The Financial Conduct Authority of the UK has launched yet another warning against a fraudulent forex website. The number of such websites has grown recently, and the British regulator is warning the investors about their presence.
Which firm was cloned this time?
The fraudsters created a clone firm of FCA-regulated entity- Swiss Investment Corporation. They were reportedly luring the victims by posing as the authorized entity and providing their reference number as well. The FCA has now added Swiss Investment Fx to its list of clone firms and urged investors not to do business with the company.
The website of the dubious forex broker is visually different from the entity it is posing to be. The logo is also different. However, the site exploits the reputation of the authorized entity by featuring the official website address at the footer of each web page. It also displays the regulatory license numbers of the original entity.
Forex fraud is becoming more common than ever
Fraudulent firms have become an increasingly tough problem for the regulators these in the UK. The FCA regularly gives warnings about these firms operating in the forex broking and cryptocurrency sector. In the case of Swiss Investment Corporation, the scammers went ahead to use official information of the original company to solicit investments from users.
Swiss Investment Corporation is a London headquartered company with offices in Zurich, Lugano, and Geneva. The company specializes in global capital markets, order execution, and private placements. It does not provide forex or contracts-for-difference (CFD) products that the clone broker claims to offer.
It is surprisingly common for clone websites to copy the original website completely, including logos and licensing information. In some cases, they use dubiously similar names as well. The websites then lure investors and steal their money, login credentials of the original website, and credit card information.
The regulators have yet to come to terms with the rampant rise of these clone firms. They are warning investors that fraudsters are using this tactic to cold call people. Therefore, if someone receives unsolicited investment opportunities, they should check the FCA’s list of blacklisted firms before proceeding.
Earlier this month, the FCA also warned users against a fraudulent firm called AGM Invest. It was the clone firm of a regulated financial entity AGM Financial Services Limited. Broker-dealer ICAP and Dukascopy Bank are among two well-known companies whose credentials were copied by clone firms recently.