Money

Fake financial company is laying trap for Aussies, regulator warns

ASIC has issued an unusually strongly worded warning against purchasing products from Skyllex.

Australians should beware of a fake investment company that already has a history of scamming overseas customers, the financial watchdog has warned.

The Australian Securities and Investments Commission (ASIC) said it was in the public interest for an alarm to be raised about a company called Skyllex, which runs a website selling financial products and services.

The company is incorporated in Australia, and claims to be insured by Aussie insurance giant QBE as well as partner of the Australian Securities Exchange (ASX).

But QBE has no record of any relationship with Skyllex, ASIC warned, while the ASX has confirmed it has no relationship with the company.

Although Skyllex is registered with ASIC, it doesn’t have a financial services license and isn’t authorised to provide financial services.

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ASIC said that it had learned of customers outside Australia that had been unable to recover funds they had handed over to Skyllex.

“The public should avoid using the website to sign up for any of the financial investments or other products or services advertised on it,” the regulator said in an unusually strongly-worded statement.

“We believe the information contained on the website is likely to mislead the Australian public. ASIC is warning that potential investors are likely to suffer detriment as a result of being misled.”

Do you buy financial products online? Have you come across this company?

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