UK Regulator FCA Issues A Warning Over eToro Clone Misusing License Number

The UK financial market regulator, the Financial Conduct Authority (FCA), has warned against the clone of leading social and copy trading retail broker eToro. The popularity of eToro among retail traders has made the platform become a top target of dishonest actors looking to exploit the popularity of the platform to commit fraud.

FCA warns against eToro

The warning by the FCA focused on ExpoToro and TraToro. According to the regulator, the two platforms have displayed the eToro license number on their website. The eToro exchange is regulated by the FCA under reference number 583263, which is the same reference number on the ExpoToro and TraToro websites.

The two names can be used interchangeably on the expotoro.com platform. The official statement released by the FCA on the matter said that scammers might mix fake details with the authentic details of verified firms to trick customers.

“Scammers may give out other false details, including email addresses, telephone numbers, postal addresses, and Firm Reference Numbers. They may mix these details with the genuine details of authorized firms. They may also change their contact details over time,” the FCA said.

However, the website used by the scammer does not resemble that of the eToro website. The ExpoToro and TraToro websites also link to the website of the regulator and to the authorization issued by the FCA to eToro UK Ltd.

However, it is not the first time that the FCA is issuing an alert about the clone sites created to mimic the eToro copy trading site. In 2019, the FCA warned against a clone company known as FX Option that impersonated eToro. The FCA also warned about eToro SB Limited.

When it comes to cloning, the fraudsters usually claim that they represent authorized companies, and they even change the contact information to make it look authentic. However, the customers that fall into this trap usually contact scammers with fake phone numbers, addresses, and website details.

Scammers target popular brands

Clone platforms have existed for a long time, and the FCA is not the only regulator that is cracking down on such platforms. In February, the Belgian regulator, FSMA, warned against the clone of Webull FX/CFD trading platform and 20 other firms that operated without the appropriate licenses.

The Cyprus Securities and Exchange Commission (CySEC) also warned against the clone of a registered broker known as IMS Markets. On the other hand, the FCA issued an alert about a clone of the Axi brokerage company.

In some cases, the scammers will also impersonate the regulators. In October last year, the New Zealand regulator, the FMA, warned against some people claiming to be employees of the agency. The CySEC has also issued an alert against those impersonating its officials.

The FCA has urged customers to only deal with the financial institutions that are regulated by the commission. Trading with regulated entities offers a lower level of risk and gives a customer more protection if anything fails to go as planned.