I came across the Lumipay Trade website through a contact at LinkedIn. Since it was obvious that the fraudsters behind it are seriously promoting it, it became imperative that the investors should know why they should not risk sending their funds to this site.
There are thousands of investment sites launched every other day. The bad news is that most of them do not have the interest of the investor in mind but are just a channel through which malicious players hop to steal money for the uninformed.
What is Lumipay Trade?
This is a site that claims that it is backed by an investment company that is actively involved in cryptocurrency and forex trading. It stated that its intention is to help the investor to reach their investment goals.
Among the services it claims to be involved with are real estate investment and management, trading in options and commodity markets and using a diversified portfolios to help their partners to make profits.
Just like similar sites, it claims that it is easy to make profit through investments made with this site than relying on individual trading efforts. Despite the misgivings that an informed investor should have about this site, it claims that the investor could get their funds back if they’re not satisfied with the investment result.
Why You Should Avoid this Site?
There are many ways to identify a fraud site and going through Lumipay Trade, there is no doubt that this is another attempt to deceive the investor and steal their funds. Sending money to this site would assuredly lead to loss of such fund.
Let us examine some of the red signs that identify this site as a scam.
Look at this quote from the site,
“We know the games brokers play. Being fund managers, we have created this framework of impeccable standards with complete transparency and the latest in trading technology.”
A Google check shows other sites that plagiarized the same content. Considering that Lumipay Trade is a new site, it is obvious that the fraudster behind it is not the originator of the content.
No reputable company would copy the content of their website from a source without attribution. Sites that do that actually try to pass across intellectual work that belongs to others as theirs. This is a dishonest practice and it is found among scam sites and other cyber criminals.
Analysis of the Lumipay Trade site using plagiarism software shows that the site content was plagiarized from another site. The fact that the owners could not craft their own content shows they are not professionals. This means that sending your funds to this site is as good as flushing it down the drain.
According to the Securities and Exchange Commission website:
“SEC and CFTC staff have recently observed investment scams where fraudsters tout digital asset or “cryptocurrency” advisory and trading businesses.
In some cases, the fraudsters claim to invest customers’ funds in proprietary crypto trading systems or in “mining” farms. The fraudsters promise high guaranteed returns (for example, 20-50%) with little or no risk.”
Now compare this with the ROI promised investors by Lumipay Trade. The basic plan has 25 percent weekly profit. This is 100 percent which is equivalent to doubling your money in a month.
If the SEC thinks that 20 percent is a likely scam, how risky when you’re offered 100 percent by a shady site such as this. It is unrealistic to think that any company has the ability to double your funds in 30 days. Those that claim they do are hoping to get your funds and turn exit scams down the line.
Stole People’s ID for Testimonies
Online businesses are aware of the importance of testimonies as a marketing tool for the promotion of their businesses. This is why they make effort to get users and other reputable individuals put in a word for the company.
Fraudsters also take advantage of testimonies on their sites to deceive prospective investors. This is so with the Lumipay Trade site which used stolen identities of people for testimonies.
Ironically, one of the testimonies is from Nana Appiah Mensah, who is wanted for fraudulent activities by the police. Other testimonies used images taken from stock photo sites and the internet.
A site that cheats and tries to deceive the users is definitely a scam. This is why you should research on any investment promises before making appropriate investment decisions.
False Claims of Regulation
On its FAQ page, on if the site is regulated, it stated:
“Absolutely! LumiPay Trades is registered and is a sub-division of Lumipay Trades which deals in conventional investing, real estate and asset management.”
Even though the site did not provide any evidence that it is registered by an authority in any country, registration of a business is not evidence that the company is genuine. There are many businesses registered to be used as fronts to steal from people or commit other criminal acts.
In terms of regulation, no company with a regulator having oversight functions over its activities would operate without adhering to standard rules and practices such as identifying the owners of the company. This was not done of the Lumipay Trade site, so it is obvious that it is not regulated by any agency.
Fraudsters are audacious because they’re aware that many investors do not research the sites before putting money in them. Investing in random and unregulated sites is risky. This is why we recommend sites that are known to have built online reputation and those whose owners are known. Here is our top recommendation.
If you have information about this scam site or others like it, please send in your comments using the comment box below. For reviews that you’ll like to see, use the contact page above.