Tradorax, KayaFX, and LibraMarkets Scams Exposed (2024)
The Tradorax, KayaFX, and LibraMarkets criminal network was clearly destroyed by the German law enforcement team in Koblenz, with assistance from Europol, Eurojust, and other authorities in Spain, Bulgaria, and Israel. While reporting the action, Europol did not disclose the targets. As discovered that this cybercrime network’s boiler rooms, unauthorised payment processors, and beneficial owners had been the targets. Although we have not yet received confirmation, we believe that our insider knowledge is accurate.
Large-Scale Fraud Enterprise
Press sources from Europol state that 11 persons were taken into custody in Israel, Spain, and Bulgaria. As of right now, the investigation’s findings indicate that the cybercrime network may have received deposits totaling up to €150 million globally. It is estimated that European investors lost over €30 million.
The Network of Cybercrime
In December 2019, the Estonian company Yield Enterprise Currency Software OÜ and the fraudulent website LibraMarkets (www.libramarkets.com) were both flagged by BaFin. Petar Borislavov Zlatkov, a Bulgarian, served as the company’s director for a while. BaFin issued a Cease and Desist Order against the company on June 8, 2020, directing it to cease operating the broker scam ProuFX (www.proufx.com), also known as UProFX, immediately.
Previously, Petar Borislavov Zlatkov held the position of director at Estonian GammaTech Services OÜ, the company that ran the massive binary options fraud KayaFX. An Israeli named Avi Itzkovich (also known as Avi Itzkovic or Avi Itzkovitz) was a certified beneficial owner of the KayaFX scheme. Through Mercure Group EOOD (previously RAX Media EOOD), he has attacked small EU investors and run illicit boiler rooms in Bulgaria.
It is not yet apparent which of the several scam brands run by this network and its boiler rooms the Koblenz Law Enforcement Team will look into. Still, we’re hoping to find out more soon.
Compared to rigorously regulated dealers like the FCA in the UK and CySEC in Cyprus, Libra Markets is currently an unregulated brokerage platform, meaning that the security of its clients’ money and trading activities are not as well safeguarded.
KayaFX (As claimed)
A broker for forex is KayaFX. Top platforms for trading forex online are MetaTrader 4 and Mobile, both provided by Kaya FX. More than 50 forex pairs, indexes, equities, commodities, gold, silver, and CFDs are available for your personal trading and investment needs on KayaFX.com.
Alpha Capital House Ltd. is the owner and operator of Tradorax.com. combines trading for binary options and forex on a one platform. The site offers 30 FX pairs, 24 indices, 9 commodities, 3 pairs based on commodities, and stocks. provides a 75–80% return. AM Capital Ltd. is the business behind the Marshall Islands-based website Tradorax. Although the website is unregulated, this broker goes beyond a simple white label clone that provides the essentials of trading.
Let’s dive more.
Tradorax: After inciting users to place “fraudulent” bets on markets, the binary trading website shuts down
Thousands of people could fall for binary options scams, according to a victim’s attorney, but many of them are too ashamed to come out and acknowledge they were duped.
It looks like a website that was suspected of defrauding savers out of thousands of pounds by luring them into “fraudulent” internet trading schemes has shut down.
Until recently, the website Tradorax had encouraged savers to place seemingly straightforward wagers on the value of stocks or currencies.
Lawyers and savers claimed to The Independent earlier this year that hundreds of people, mostly seniors, were not receiving returns for their investments on websites like Tradorax, and that dozens of people’s accounts were being frozen.
Although a growing percentage of these sites, also referred to as binary options trading platforms, are fraudulent, many of them are genuine.
Speaking to The Independent in July, attorneys and personal finance specialists claimed that even the lawful platforms are not under the Financial Conduct Authority’s (FCA) oversight, making it impossible for the government to manage the sector.
The UK gaming Commission regulates some binary options trading sites, but only if the company has gaming equipment situated in the nation.
Numerous people with contact addresses provided on the website that were outside of the UK included Tradorax.
James Hellis, a pensioner and former independent IT contractor, stated that he had invested around £60,000 with Tradorax in total. He claimed that over the course of several months, a person posing as a “broker” had been assigned to trade on his behalf and make a number of investments.
He said that he submitted a withdrawal request to the site in December, citing his pension fund as the source of the majority of his funds. He asserts that his account thereafter seems to have been blocked after the request was turned down.
Mr. Hellis filed a chargeback dispute with his banks since he had used credit cards to pay for some of the investments, but they were unwilling to assist him.
In addition, he claimed to have reported the issue to the Financial Ombudsman Service (FOS), which was established by Parliament to address issues with financial services, and Action Fraud Police, the national reporting centre for fraud and cybercrime that works in tandem with the NFIB within the City of London Police. Neither could provide him assistance.
The most recent data available for the period ending in May 2016 shows that the City of London Police’s National Fraud Intelligence Bureau (NFIB) received 305 reports of binary options frauds, or 27 per month.
However, a victim’s attorney told The Independent that since victims are usually too ashamed to come forward and admit to being duped, the real figure is probably far higher and probably runs into the thousands per year. “Perhaps the biggest financial scam in the world,” he said.
Experts have also stated that because of regulatory changes made in April 2015 that make it easier to access funds, pensioners would be more inclined to try trading.
Pensioners can now withdraw their entire pension as a lump sum under the new regulations, which also remove the requirement for them to purchase an annuity. The idea of trading binary options can be alluring, especially when one finds themselves suddenly in possession of large sums of money and other investing options offer relatively modest returns.
“Pension freedoms have opened up a can of worms,” remarks Kate Smith, Aegon’s head of pensions. According to her, some con artists target seniors in particular.
“They are taking advantage of people’s weaknesses.”
Data released by the Financial Conduct Authority (FCA) in July indicates that 53% of pension pots accessed since the implementation of the new regulations had been fully withdrawn. Furthermore, the watchdog has expressed a number of concerns recently regarding the use of the money by individuals.
The next year will see the publication of a comprehensive report on the problems with pension freedom.
Tradorax “ceased all activities due to regulatory issues and no longer provides its services to clients,” according to a message posted on the company’s website on Wednesday.
Wind-Up- Detection and Prevention of Enterprise Fraud
More than ever, enterprise fraud control is crucial. Let’s examine typical problems, fixes, and features that will safeguard your business.
The PwC Global Economic Crime and Fraud Survey 2020 estimates that fraud costs organisations $42 billion globally. That’s a lot of earnings that businesses can’t afford to see disappear into thin air in a business environment that is changing more quickly and fiercely than before.
Furthermore, fraud shows no signs of abating. The availability of fraud technologies and economic uncertainty have created a perfect storm. All that is required for dishonest people to target businesses is a computer, an Internet connection, and malicious desire.
Enterprise Fraud Management (EFM): What is it?
The set of procedures called enterprise fraud management (EFM) is intended to keep an organisation safe from both external and internal fraud. EFM gathers information about users, accounts, and devices in order to spot illegal activity, fraud, and corruption.
How is Enterprise Fraud Management (EFM) Determined?
Large-scale companies can handle every facet of the fraud ecosystem with EFM, from monitoring and investigative tools to data gathering and analysis.
EFM systems are frequently divided into five main layers:
- The goal of the endpoint-centric layer is to secure the user’s point of access using geolocation, 3DS, and other authentication methods.
- The navigation-centric layer assesses the probability of, say, an account takeover (ATO) by comparing historical data with present behavioural patterns.
- Layer that is focused on a specific channel and keeps track of an account’s activities within it by comparing them to past actions and the established rules.
- Cross-channel layer: this examines how a user behaves in several channels, such as payment and product.
- Relationships between users and transactions are directly compared via the entity link analysis layer.
How to Spot and Avoid Business Fraud
Data analysis and interpretation have made fraud detection easier than ever before, but since scammers will always find new ways to commit fraud, it’s critical to have an EFM system that targets the main misuse vectors that your sector deals with.
Your company may choose to operate with a whole end-to-end EFM system or develop a more specialised multi-layered strategy made up of various products, depending on what is needed. Among the most crucial components of any EFM system are the following:
- Team Roles and Responsibilities
- Real-time Transaction Monitoring
- Machine Learning
- Behavioural Analytics
- Decision Making
- Access to Alternative Data
- Fraud Risk Assessment / Scoring
- Reporting Procedures
- Investigation Process
- Multi-factor Authentication
Important Lessons: Tools for Enterprise Fraud Management Protection
It’s time to invest in a cutting-edge fraud prevention system if your business is losing too much money and resources as a result of fraud.
The good news is that contemporary solutions can be seamlessly integrated, are flexible, and nimble. You can observe a decrease in fraud rates in a matter of days without having to slow down your business operations thanks to the ease with which you can use technologies like chargeback prevention and transaction monitoring.