The financial industry is affected by fraudulent firms that seek to steal funds from investors and traders. Many of these fraudulent firms clone legitimate firms as they try to take advantage of the brand awareness that the legitimate ones have built within the financial community.
Dukascopy, a bank and forex broker from Switzerland, issued a warning against an FX and cryptocurrency provider based in Russia. The Russian based entity has been posing as an affiliate of the Swiss bank in its provision of FX and crypto related trading options. The clone firm has been using the website dukas-broker.ru. The website and its implications of association to the Swiss bank have led to the legitimate entity deciding to take action and warn their customers against the illegal broker.
According to the warning from Dukascopy, the bank does not have any links with the website mentioned above, and they advised all their clients to avoid it entirely. The financial firm added that the site is fraudulently using its logo and brand name in a bid to attract customers. Dukascopy clarified that the website is a fraudulent clone and it is in no way controlled by Dukascopy Europe or any of the entities in the Dukascopy group.
The broker is looking to take action against the illegitimate website. The warning went on to say that clients should not trust any of the information that is provided on the site. They added that all of the information on the website is a scam, and users should make sure that they do not offer any of their personal data to the site. Providing any personal data places those who visit the website at risk of having their data stolen and used for illicit activity.
If one engages in business with these clone firm, they risk losing their funds. This firm is not regulated, and it’s not in any way affiliated with Dukascopy, and this means that if one loses their funds to it, they cannot lay claim with the bank or with any regulator.
FX and crypto related scams on the rise
Scams such as the one being run via the website dukas-broker have become more common as fraudsters seek to take advantage of the growing popularity of these financing options. There are several clone firms popping up on the internet, and traders have to exercise due diligence when they engage with financial options.
One of the ways to avoid falling victim to fraudulent firms is to check with the concerned regulatory bodies about the registration status of a firm or website. Billions of dollars have been lost to scammers who use FX and crypto related methods. Regulators and industry players need to come together and work to uproot any of the fraudulent firms operating in these industries.