Consumer complaint received 2022-05-05
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: UNITED STATES MINOR OUTLYING ISLANDS
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
I was solicited by your company XXXX XXXX XXXX XXXX, operating under the web address XXXX XXXX, XXXX ( XXXX and XXXX ) ... to wire funds to a false and fictitious trading account. You are part of a global network of cybercrime known as the XXXX XXXX XXXX XXXX XXXX XXXX. I have accessed your Internetbased platform available under ( XXXX and XXXX ) ... You did not 2 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. 
You 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 XXXX XXXX XXXX XXXX are presented as experienced brokers ( a designation that requires licensing ). Evidently, you are advertising and promoting yourself as a provider of financial services and are trying to influence third parties decisions to undertake financial commitments and to invest in the offered financial products. All these activities require you to possess the required licensing. 
The website of XXXX XXXX, XXXX contains clear statements that your team consists of professional brokers. Persons claiming to be properly licensed brokers apparently contacted third parties and communicated with them the possibility of making an investment, which is strictly prohibited by the law where there is a lack of the appropriate license. Only a licensed broker can contact persons with the intention of advising them how to invest their money. 
To be able to act as an investment intermediary, or broker, or similar i.e., in order to have the capacity to offer financial advice and to provide access to regulated financial products to third parties one has to be registered with the relevant supervisory authorities. It is the common rule that financial products such as CFDs, indices, binary options, stocks and commodities exist, are regulated, in most of the rest of the world, including in the United States ( where our client resides ) and in XXXX ( where your money services business is registered ). 
Our investigation in the case has shown also that there are warnings from Government Regulatory Authorities for operating and providing financial services without having the proper required licensing. 
You claimed to have the ability to trade regulated financial products. You provide a fictitious and malicious software which does not execute any trades and is not connected to any recognized exchanges. It is manipulated by your staff to exhibit your own desired figures. You have left a trail of victims who have fallen for this sophisticated and well-crafted scam and who have lost their entire life savings. 
Acting in good faith and in full reliance on the website information, our client was instructed in writing by your staff to wire funds to your firm, XXXX XXXX XXXX XXXX, to an account at HSBC, XXXX. 
Based upon the above facts, the following violations of law occurred : a ) You were trading regulated financial products without the required license ; and you employed persons that were providing financial services without required license. 
b ) Neglect of your duty to actively prevent fraud and to identify abnormal payment patterns. 
c ) Neglect by your firm of the legal provisions for measures against money laundering. 
d ) Theft/fraud.

Company response to consumer: Closed with explanation