The practice of cloning in the financial industry keeps gaining speed as fraudulent entities are seeking for benefits from misusing some details of authorized investment firms.
Right after the Financial Conduct Authority of the UK warned people about clones of Forex companies Atom8 and ayondo, the regulator has been actively informing the public against transacting with a clone. Today, an unauthorized entity is abusing UK Forex broker Delta Financial Markets Limited, also known as DF Markets.
According to the UK regulator, the cloned entity is not related in any way with the licensed one and that investors should be concerned in case they are being contacted, especially by the fraudsters.
The consumers’ complaints have made firms, offering foreign exchange trading and other commodities, wary. A common feature these unauthorized companies have is that they promised high returns and guaranteed profits.
FCA notes that firms that offer such services in the UK have to be authorized by them. However, a lot of the firms that were reported were unauthorized but claimed to be UK-based as they provided a London address. In reality, they don’t have any physical presence in the UK.
Meanwhile, most consumers reported they received some returns from the firms initially, and then they were encouraged to invest more. Soon after, the returns stop and their account got suspended. They weren’t able to get hold of the firm.
The FCA strongly suggests that if consumers want to trade in high risk investments like Forex, they should ensure that they only transact with authorized firms. To do this, consumers should ask for the Firm Registration Number (FRN) and contact details. They note that consumers should call them back on the switchboard number that was provided on the Register. If no contact details were provided on the Register or if the firm claims that they are outdated, consumers should contact the FCA.