The Financial Conduct Authority (FCA) on Wednesday exposed another fraudulent entity. It brings to light a clone that has been posing as London headquarters of the FCA regulated brokerage ETX Capital.
The FCA alleges that the copycat broker has chosen to operate under the brand ‘ETX Capital Global. It advertised its parent entity as Monecor (London) Ltd, the same name as ETX’s holding company. This was to convince local traders that it was the authorized online trading firm that had contacted them.
The illegitimate broker, conversely, did not assume the address of the original company offices. It opted to claim an address in STAR HILLS, F19 N1903 JALAN BUKIT BINTANG, instead.
Clients should be aware that the licensed firm’s offices are located at One Broadgate London, EC2M 2QS, United Kingdom.
This seems like yet another instance of a scam operation. It is where an unlicensed company illegally assumes the identity of an authorized company. This is so that traders will mistake it for the legitimate entity.
Furthermore, ETX Global had also been taking advantage of its misleading name. That is to solicit traders who are based in the United Kingdom.
The firm not only identified itself as a well-known online trading company under false pretenses. But it was operating without authorization as well. It is a major violation of British law.
A Usual Phenomenon in the Industry
Clone firms are a usual occurrence in the industry. Fraudsters have grown increasingly resourceful in recent years.
Advertising an illegal operation as a reputable brand or entity is a commonly adopted tactic for scammers.
The FCA warns and encourages traders or those considering online trading to exercise caution. In fact, it strongly advises against funding an account or investing via this specific company.
Whoever chooses to sign up with the impostor will not receive the financial authorities’ assistance should things go awry.
The regulator reminded UK investors that clones employ the tactic of adopting a legitimate company’s name. This is when they cold call potential victims.
It urges them to be cautious if they get contacted by anyone claiming to work for this company.