BaFin Warns of Clone FX Companies

December 04, 2018 | AtoZ Markets –The German financial authorities BaFin issued a warning, announcing that two Forex companies were operating without its authorization.

Fraudulent company operated under legal name

According to the German Federal Financial Supervisory Authority( BaFin ), one of the suspected companies seems to have set up a ‎clone firm, operating under the brand ‘FXC Markets’ which is identical to the FXCM Group Markets name. As a result, local traders, assuming that they are using authorized online trading platform became victims of the copycat company. According to the BaFin officials the illegitimate broker claimed for the fraudulent company an address in Majuro, Marshal Islands and did not not assume the address at which the original ‎company’s offices are located.Clients should ‎know that the licensed FXCM Group Markets official address is 20 Gresham Street, Fourth Floor, London, EC2V 7 JE, United Kingdom.‎ BaFin noted, that he clone firm not only operated under a well-known online trading company’s brand but it was operating without ‎authorization as well.

Clone firms appear very often in the financial industry

Clone firms are not an unusual occurrence in the financial industry, as the German finance specialists state. According to BaFin, the number of the fraudsters has grown increasingly in the recent ‎years. A commonly adopted tactic, as BaFin specialists state, for scammers to ‎advertise an illegal operation as a reputable brand or ‎entity. In November 2018, the ‎Financial Conduct Authority (FCA), a financial regulator in the United Kingdom, exposed ‎fraudulent entity that has been operating under Mayfair Capital Markets brand which is a regulated business entity operating under the FCA’s regulations. In September 2018, BaFin issued a warning regarding a scam company which allegedly registered its office in Berlin, claiming that it was authorized by the German Federal Financial Supervisory Authority.

BaFin strongly ‎advising traders against funding an account or investing via aforementioned fraudulent companies. Anyone who ‎chooses to sign up with the impostor should bear in mind that they will not receive the ‎financial authorities’ assistance if the things go away.‎

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