FCA Warns About Clone Firm XTB Trading World
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A clone of the regulated publicly-listed broker XTB is seeking to defraud investors. The UK financial market regulator, Financial Conduct Authority (FCA), has warned about the unauthorized firm, saying it is a scam.
This fraudulent scam uses the details of the regulated XTB platform to trick investors into thinking it is a genuine company.
The FCA has now warned that the clone company has no association with the legitimate company. It has also urged investors to be cautious when evaluating online investment opportunities.
FCA Issues a Warning Against XTB Clone Firm
The clone firm is trading under the name “XTB Trading World.” It has been promoting itself to residents in the UK with claims that it is associated with XTB Limited. According to the FCA, the clone firm has no association with the real XTB broker.
The fraudsters are using the XTB name to trick investors. According to the FCA, caution is extremely important when investing with financial firms to ensure that an investor does not fall prey to scammers.
The FCA also warned that the XTB Clone site promoted financial products and services to investors based in the UK without getting the proper authorization. Investors investing money with this clone firm are, therefore, at risk of losing their money without any chance of reimbursing.
The Menace of Clone Firms
XTB has been facing the menace of scammers cloning the company to dupe investors. In March last year, the FCA had warned about people impersonating XTB employees. However, it is not the only popular trading firm facing this challenge.
Leading retailers Hargreaves Lansdown and Westpac have also been recently targeted by clones. The trend shows that setting up a fake firm similar to a legitimate one has become more popular.
In November, the FCA issued an alert against the imposters of popular platforms such as the eToro social trading platform and IG Group. Scammers have also misrepresented Santander and Saxo Bank.
Clone firms usually misuse people’s trust in a renowned financial company to exploit investors. Regulators such as the FCA always urge investors to cross-check the name of a financial firm on its register to ensure they are not dealing with unauthorized companies.
Investors should also be cautious whenever they receive unsolicited contact on investment opportunities. They are urged to cross-check a firm’s credentials before sending money or sharing personal information.
