June 20, 2019 | AtoZ Markets - The UK Financial Conduct Authority has recently confirmed that CWG Markets forex broker is not authorised.
On Wednesday, 19th June, the FCA published on its website a warning, in which it said that CWG Markets forex broker are a clone of another FCA-regulated firm, “to try to convince people that they work for a genuine, authorised firm.”
In its warning, the British watchdog drew consumers’ attention to that the clone firm referred to above has no association with the FCA registered firm CWG Markets LTD, detailing that the latter owns the website of www.cwgmarkets.com, along with the email address [email protected].
The regulator started its warning by stressing “Almost all firms and individuals carrying out financial services activities in the UK have to be authorised or registered by us. This firm is not authorised or registered by us but has been targeting people in the UK, claiming to be an authorised firm.”
It is worth mentioning that the forex market witnessed in the last couple of years several incidents of fraud, where scammers created fake websites and copied the details of legally authorised brokers to drain investors’ funds.
How forex fraudsters deceive consumers
A very similar website address and email address to the regulated firm are the top two starting steps scammers usually resort to, to confuse forex investors, in addition to providing fake details with regard the address of the firm.
Financial regulators always urge traders to check out with their websites first before making any investments with the brokers, in order to verify the legitimacy of and any updates about the broker they intend to deal with.
In a similar context, the FCA had warned earlier this month of another Forex scam, as its investigations led with regards to AGM Invest / AGM Group. The latter was confirmed in the FCA’s warning to have cloned an FCA appointed representative firm, under deluding identical details between the authorised and unauthorised firms.