Millions lost in fake stock exchange scams in Iraqi Kurdistan

SULAIMANI,— Millions of dollars have been fraudulently taken from individuals in Iraq’s Kurdistan Region through fake stock exchange platforms, according to a report from Voice of America VOA News.

Mohammed Hussein, a member of the Iraqi Economists Network, told VOA-Kurdish that fake websites were established to trade international commodities, but instead, they operated as scams, stealing people’s money.

Experts note that the absence of clear regulations for online trading in both Iraq and the Kurdistan Region has allowed these fraudulent schemes to thrive. Many investors, often lacking financial expertise, have been tricked into investing large sums, only to face significant losses.

Some companies involved in these scams sold goods and services far beyond their actual value.

A member of Iraq’s Business Network disclosed that millions of dollars were quickly and illegally transferred out of the Kurdistan Region under the name of “Borza,” a fraudulent scheme that has caused significant financial damage to local residents. Some of the companies in this market were found to be fake.

Hussein explained, “A website was created to facilitate the purchase of international currency and bonds through Borza. However, the site was a scam, and people’s money was lost.

Additionally, another company posing as a gold and silver investment platform also took a large amount of money from people.”

He further noted that the scam involved substantial profits, explaining that investments of $100,000 were sold for as much as $500,000. Many individuals lost money through these deceptive transactions involving fake buying and selling or electronic currency exchanges.

Economic experts have pointed out that the lack of specific laws to regulate electronic markets in Iraq and the Kurdistan Region has allowed many people to suffer financial losses. Some businessmen and companies have taken advantage of this regulatory gap.

The Borza platform, which dealt with buying fish, oil, and bonds for a set amount of money, differs from the foreign exchange market, where the exchange happens between two currencies.

Numerous citizens in the Kurdistan Region have experienced financial losses due to their involvement in Borza. Many of these individuals lacked the financial and economic knowledge needed to navigate these electronic markets.

Others lost their money through offices that facilitated Borza transactions. The owners of these offices also suffered major financial losses, with citizens’ funds effectively disappearing.

A businessman from Sulaimani, who works in the currency market (Bazari Dolareke), revealed that through Borza, $1.1 million was lost.

Additionally, the same company took money from 78 other businessmen, with each individual losing over $300,000.

Asso Muhammad, a Sulaimani-based businessman, told VOA, “The person who took our money under the name of Borza was an Arab citizen.

He was arrested after a report was filed and was held for about three months, but later released. This person now owns properties, luxury cars, and high-value homes, all of which were purchased with our money, benefiting his family.”

Muhammad continued, “I wrote to the office of Bafel Talabani, the president of the Patriotic Union of Kurdistan PUK party, to apply pressure on the individual who took the money. Now, I am seeking to recover $250,000 out of the $1.1 million, but I have not agreed to this amount.”

Despite the widespread losses in the Borza scam, many businessmen and citizens in the Kurdistan Region have not given up and continue to participate in these electronic markets.

Azad Hassan, a businessman from the Garmiyan area, shared, “As a grain trader, we handed our money to a company for purchasing wheat and barley, but the trader consumed all the money and claimed that Borza had defrauded him.”

He added, “The total amount taken by this trader is nearly 50 billion Iraqi dinars, but we intended to use our funds to buy barley, not to send them to Borza.”

This ongoing issue of fraudulent schemes in online markets remains a significant concern for individuals and businesses across Iraqi Kurdistan.