Management of securities for the first time invited journalists of the Russian media at a special briefing to talk about the risk of fraud in the financial market. The reason was a sharp increase in the number of investment projects, attracting funds of citizens, and using unreliable or simply a fraudulent financial scheme.
At the briefing, held at the end of last week, Professor Shmuel Hauser, the head of the securities Department, expressed concern that the new immigrants coming into the country, often victims of scams, promising high profits.
New immigrants, the flow of which has increased significantly in recent years, were often easy prey for fraudsters. Several factors contribute to this: language barrier, availability of cash funds that immigrants bring with them and are in no hurry to invest into the Bank account, as well as inexperience in the new reality.
One indicator of the problematic nature and lack of transparency the company can serve the promise of unusually high profit in a short time. Management of securities recalled as an example of a long-standing case of Gregory Lerner (Zvi Ben-Ari), who was convicted for fraud against investors, many of whom were new immigrants.
The office of securities recommends to carefully check on its website, was whether a company’s financial structure. In the event that the company, which proposed to invest was, it reduces the risk associated with lack of control.
Shmuel Hauser drew journalists ‘ attention to the problem of binary options. We are talking about trading platform, offers its clients to bet on the forecast the rise or fall of any financial instrument – for example, will rise or fall the course of a particular stock in the next few minutes. «From our point of view, binary options find real gambling, not related to real output in the market,» he said.
Not so long ago in Israel a law was passed prohibiting such companies to operate in the Israeli market. But so far the ban doesn’t affect businesses, working with clients from other countries. Thus, Israel has turned into an international centre for this dubious business, noted in the Management of securities. An Israel-based firm offered its products to the countries of the former USSR.
Often firms to recruit new immigrants, with the education and knowledge of languages, but not versed in this industry. They say that they are engaged in legitimate investment activities, and promised a high salary. Work in such organizations often leads to the violation of basic rights of the workers themselves, becoming «hostages» of the unreliable schemes, which use their employers, say management.
Professor Hauser noted that this activity causes considerable damage to the image of the state of Israel. Many countries, including the countries of the former Soviet Union, received complaints, both from investors and from regulators. They all lay responsibility for the consequences to Israel and the Israelites associated with financial fraud. The movement for the boycott of Israel (BDS) using this subject for their own purposes.
The securities Department initiated a bill banning companies in the binary options industry in Israel, regardless of the country in which these companies provide their services.
Professor Hauser said that a special briefing for Russian media – an important step towards raising awareness among the Russian-speaking population of Israel. The securities Department also conducts special seminars to improve the level of financial literacy. The workshops are suitable for Russian-speaking immigrants who believe in Management.
«In our country, hundreds of thousands took to the streets demanding lower for a few shekels, the price of basic products. This is, without a doubt, the most important goal. But how many of our fellow citizens are willing to spend an hour of your time to understand the reliability of proposed financial scheme or just to check where their pension savings?» concluded Hauser.