The British Financial Conduct Authority (FCA) recently warned investors of a clone firm impersonating Plus500. The fraudulent website is trying to lure investors and copy legal details of the original firm.
Alarm around a copycat firm
The FCA said that a fraudulent clone website, www.financereserve.com reproduced the Plus500 website in several contexts and areas. The copycat broker was even trying to copy the legal information of Plus500 and tried to convince investors that they were the authorized Israel-based and London stock market listed firm. The watchdog also warned investors to be wary of websites that claim to be developed, affiliated, or authorized by popular and regulated brands in the market.
Forex brokers under attack
Copycat websites have become a regular nuisance in the British financial market with forex and CFD firms being the most targeted. Rogue operators copy the names, websites, and design of regulated firms. Malicious operators in the market also try to copy information like license numbers. Recently, some rogue operators went as far as to try and con the FCA. They communicated with the regulator as an authorized firm and requested the information on the FCA website be changed to the attacker’s address and website.
The FCA has been sending warnings roughly on a daily basis, which highlights the high number of copycat websites in the market. The FCA also warned investors that fraudulent actors typically copy the name of an authorized firm and launch a website with a similar website design. They lure investors to illegal websites and solicit payments. The investors remain under the impression that they are safely investing their money. The frauds can vanish with the money anytime while the investors are not covered under any regulatory protection plans.
Earlier this month, the FCA warned users about a fraudulent website that claimed to be affiliated with the AT Global Markets (UK) Limited. The watchdog is asking users to be cautious while trading online. It has strongly advised users not to fund their accounts with the companies it has warned against.