BaFin Warns Against Investment Offers Shared in WhatsApp Groups by Unlicensed Firm
Germany’s financial regulator, BaFin, has issued a public warning against Axionto, a company allegedly promoting unlicensed investment services through WhatsApp. The firm is reportedly targeting German investors with financial recommendations shared in private chats and group messages.
Suspicious Claims and Missing Company Details
The investment tips circulating in these WhatsApp groups are allegedly attributed to “Professor Lorenzo Riccardi.” However, BaFin said there is no information confirming the identity or existence of such a person.
"According to the information available to BaFin, Axionto is using WhatsApp groups and chats to contact German investors. The company recommends investing in particular financial instruments," the regulator wrote.
"The recommendations posted in the WhatsApp groups are allegedly made by Professor Lorenzo Riccardi. BaFin is not aware of the existence of such a person."
Further raising concerns, Axionto’s website, axionto.com, provides no legal notice, company structure, or registered business address. BaFin noted that this lack of transparency is a red flag for any firm offering financial services.
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Under German law, companies must obtain proper authorization from BaFin to provide financial, investment, or crypto asset services. Axionto does not appear in the regulator’s database of authorized firms, suggesting the company is operating illegally.
WhatsApp and Social Platforms Draw Scrutiny
The case adds to a growing list of firms using encrypted messaging apps to bypass regulatory oversight and reach retail investors. BaFin continues to monitor such activity and encourages the public to report suspicious financial solicitations.
BaFin advised consumers to avoid dealing with unlicensed firms and to conduct due diligence before acting on unsolicited investment advice, especially when promoted through informal or anonymous channels like WhatsApp.
A recent study by BaFin showed that more young investors are turning to social media for financial advice. People aged 18 to 45 are especially likely to use these platforms, with cryptocurrencies proving particularly popular among them.
The survey also revealed generational differences in investment choices. Millennials are more likely to prefer traditional options like call money and fixed-term deposits, while Gen Z leans more towards cryptocurrencies and precious metals.