Danger! BaFin warns of WhatsApp fraud with Kwillow and Pioneer Coin!

Danger! BaFin warns of WhatsApp fraud with Kwillow and Pioneer Coin!

BaFin, the Federal Financial Supervisory Authority, today published a warning that protects investors from attempted fraud via WhatsApp groups. The focus is on the Kwillow International Financial Group, which falsely presents itself as an American company and advertises investments via the Pioneer Coin Market platform (pcmarketde.com and the PCM PRO app). According to anwalt.de, both companies have no authorization for financial or crypto services in Germany and are therefore operating illegally.

The warning is particularly relevant because the services offered are not only unregulated but also expose investors to high risk. Investment models that promise high profits often turn out to be fictitious. In many cases, deposits disappear without a trace and investors are denied withdrawals. BaFin points out that typical features of these scams are contact via WhatsApp, the use of group psychology and the impression of confidentiality.

Details about the fraudulent practices

As bafin.de reports, the initiators of the WhatsApp groups actively guide investors to register with the Pioneer Coin Market platform. Within these groups, purchase recommendations for various financial instruments and cryptocurrencies are distributed without any legal basis for this. BaFin expressly warns against blindly relying on these recommendations.

Another important note concerns the use of automated AI systems for investment decisions. BaFin recommends always verifying offers and recommendations with other reliable sources in order to protect yourself from fraudulent activities. This is also because providers of financial and investment services in Germany require permission from BaFin in order to be able to operate at all.

Signs of fraud and options for action

BaFin bases its information on the applicable legal framework, including the Banking Act and the Crypto Financial Supervision Act. This makes it all the more important to conduct thorough research before making any investments. Investors should react particularly skeptically to the information disseminated in WhatsApp groups and not make any further payments if they have already been affected. The anwalt.de wants affected investors to secure evidence, have payment channels checked and, if necessary, initiate legal reclaims.

BaFin, the Federal Criminal Police Office and the state criminal investigation offices strongly advise caution when investing money on the Internet. Consumers can also find out more about the BaFin consumer protection podcast “Beware, Fraud” in order to be better prepared for attempted fraud on the financial market.