Product: Credit card or prepaid card

The facts show the following violations occurred : 1. The Merchant was trading regulated financial products without the required license ; they employed persons that were providing financial services without required license. There is the possibility that in this case, your firm had joint knowledge ( is an accessory ) in trading regulated financial products without required license. 
2. There is the possible neglect of your duty to actively prevent fraud and to identify abnormal payment patterns.

3. There is the possible neglect by your firm of the legal provisions for measures against money laundering.

4. There is the possible involvement of your firm to the theft/fraud that has been committed. 

1. Facts of the Case I was solicited by a merchant, XXXX XXXX XXXX, operating under the web address XXXX XXXX  to wire funds to a false and fictitious trading account. The merchant is part of a global network of Cybercrime known as the binary option and falsified trading scam. I have accessed the Internet-based platform of the Merchant available under XXXX XXXX To the best of our knowledge, the Merchant did not provide a contract ; however, the terms and conditions contained on the site are intended to govern the relationship and responsibilities of the parties. Therefore, all information on the website is relevant for determination of the services and the rights and obligations of the parties. The Merchant claimed to be a financial services provider dealing with regulated financial products, such as CFDs, indices, binary options, commodities etc. In addition, the officers and employees of the Merchant are also presented as experienced brokers ( a designation that requires licensing ). Evidently, it is advertising and promoting itself as a provider of financial services and is trying to influence third parties decisions to undertake financial commitments and to invest in the offered financial products based upon the information provided by the Merchant on its website. All those activities require the Merchant to possess the required licensing. The website of the Merchant contains clear statements that its team consists of professional brokers. Persons claiming to be such licensed brokers apparently contacted third parties and communicated with them the possibility of making an investment, which is strictly prohibited by the law if there is a lack of the respective license. Only a licensed broker can contact persons with the intention to assist them regarding where and how to invest their money. To be able to act as an investment intermediary, or broker, or similar i.e., to have the capacity to offer financial advice and to provide access to regulated financial products to third parties one must be registered with the relevant supervisory authorities. It is the common rule that financial products such as CFDs, indices, binary options, stocks and commodities exists, are regulated, not only in the XXXX, in which the Merchant claims to be located, but also in most of the rest of the world, including in United States ( where our client resides and where your money services business is registered ). However, the Merchant is NOT licensed to offer regulated financial products nor to provide financial advice to third parties such as our client. There are warnings from Government Regulatory Authorities for operating and providing financial services without having the proper required licensing. The Merchant claimed to have the ability to trade regulated financial products. In truth, the merchant provides a fictitious and malicious software which does not execute any trades and is not connected to any recognized exchanges. It is manipulated by the merchant to exhibit its own desired figures. The merchant has left a trail of victims who have fallen for a sophisticated and well-crafted scam and that have lost their entire life savings. The offering of financial services without the mandatory required licensing is considered illegal and fraudulent. Acting in good faith and in full reliance on the website information, our client was instructed in writing by the merchant to wire funds to your firm, XXXX XXXX XXXX to an account at XXXX XXXX.