The UK Financial Conduct Authority (FCA) recently warned investors of clone fraud and flagged a company called 4TFX. The company was impersonating a legitimate firm called AT Global Markets (UK) Limited.
Scammers are tricking people
The FCA continues its clampdown against investment fraud, especially clone fraud, in which scammers pose as legitimate companies and trick investors into investing their cash. The FCA warned users against 4TFX. The regulator did not explicitly accuse the website of a clone fraud in which it pretended to be a multi-regulated broker. However, it warned investors that scammers were trying to claim fraudulently that they had relevant permissions to operate in the country.
4TFC was reportedly usurping some legal information of the regulated entity AT Global Markets. It also referred used to the official FCA website to convince them of their legitimacy.
An FCA clone emerged as well
ATFX is currently working on expanding its presence in Asia. It is also working extensively on the localization of its product. The firm reported a sizeable increase in turnover for the year ended October 31, 2019. However, it also closed the year on a loss.
The ATFX clone website had also been working to solicit traders based in the UK. It pretended to be a well-known online trading company and also worked without authorization in the market. This deceived the consumers and made them believe that they were working with a regulated firm.
The City watchdog noted in a recent statement that it experienced an increase in the number of cases of frauds related to forex brokers. The FCA said one of the most common issues with the fraud is that it claims to be providing returns that are too good to be true. Some clone scams are now directly targeting the FCA, claiming to represent the regulator. They suggest changing the legitimate contact details of the company on the FCA registers, claiming that the existing details were outdated. The clone firms then give their own details to convince users that they are legitimate.