As more individuals turn to the stock market to manage and grow their savings, the Moroccan Capital Market Authority (AMMC) is sounding the alarm over a growing wave of investment scams and unauthorized financial advice circulating outside the bounds of regulation.
The AMMC has observed a sharp rise in two troubling trends: the widespread, uncontrolled sharing of investment advice—often through social media and private messaging apps—and the spread of fraudulent trading platforms. These schemes typically present themselves with a polished, professional appearance, make bold promises of quick profits, and often impersonate legitimate financial institutions to lure unsuspecting victims.
What might seem like harmless stock tips—buy or sell recommendations casually shared online—can actually be illegal when they come from unregistered sources. In Morocco, offering investment advice is a regulated activity. Only individuals or entities approved by the AMMC are authorized to provide such services. This official status ensures that advisors meet competency standards, adhere to ethical practices, and disclose any potential conflicts of interest.
In more deceptive cases, these so-called recommendations serve as tools for market manipulation, with tactics like “pump and dump” schemes. This method involves creating artificial hype around a stock to drive up its price, allowing fraudsters to sell at a profit before the price collapses—leaving average investors with heavy losses.
The AMMC is also warning against the common tactics used by fake trading platforms. Many of these sites follow a predictable playbook: they lure users with flashy, misleading ads, require an initial deposit, then show fabricated profits to entice further investment. Eventually, when users try to withdraw their money, the platform either blocks access or vanishes entirely.
Some of these platforms specialize in trading precious metals or foreign currencies, areas that often fall outside the AMMC’s direct oversight. When such cases arise, legal action may be pursued under general criminal law rather than market-specific regulations.
Importantly, the AMMC reminds the public that those who spread false financial information or give illegal investment advice can face serious penalties, including fines and imprisonment. The best defense for investors is to stay cautious, verify sources, and avoid acting on unregulated advice. A key step is checking the AMMC’s official list of licensed financial advisors, available on its website.
To combat these threats, the AMMC is rolling out an online awareness campaign. The educational platform “Capital Markets for Everyone” offers clear, accessible resources to help the public understand how financial investments work and how to recognize potential scams.
