FCA Warns Investors of New Clone Website as Numbers Increase

The UK’s financial watchdog, the Financial Conduct Authority (FCA) has warned investors of another clone website impersonating CFD broker, Plus500. Plus500, a leading Israeli-based broker, has a London stock market listing and one of the UK’s top CFDs providers.

The clone website, which goes by the name FCRM Management is registered under the domain name www.financereserve.com. It claims its headquartered on Baker Street in London, with other offices in Geneva Hong Kong, and Singapore. The website also says it has registration to operate in Australia, Netherlands, New Zealand, Spain, and Switzerland.

According to the FCA, FCRM Management copied a lot of details about Plus500 onto their platform. This includes legal information to try and defraud unsuspecting investors. An excerpt from FCRM’s home page reads:

“FRCM is a trading platform offered by Plus500UK Ltd, a UK based company with its offices located in the City of London. The company gained authorization and regulation from the Financial Conduct Authority (FCA) to offer Contracts for Difference (CFD).”

Clone Websites on the Rise

Clones are an old con in the financial industries, only that malicious operators are adapting and taking their coin online. A common operation involves announcing and advertising an illegal service under a reputable entity or brand.

The FCA said that investors should watch out for fraudulent websites claiming to be developed or authorized under-regulated brokers.  Fraudsters and unregistered online trading providers are increasingly hiding under genuine brand names to lure and possibly scam investors.

FCA Issues  Multiple Warnings

The FCA has been issuing frequent warnings to both investors and brokerage firms urging them to stay vigilant. The announcement involving FCRM is the latest in a series of warnings that the FCA has been issuing to investors. Among the top targets of such rogue operators are Forex brokers, in a growing trend especially since the coronavirus outbreak.

So far, the FCA has exposed multiple website clones as well as forex and crypto scams. This includes website clones for well-established global traders such as Trading 212 and AT Global Markets (UK) Limited.

Apart from issuing warnings, the FCA has also blacklisted many websites for operating without licenses. In fact, these brokers include Money Sense Market, TD Global Finance, InterCryptos, and TRADING212.

Traders and investors should exercise extreme caution while dealing with online brokers, advises the FCA. The UK watchdog provides a database for investors to check whether or not a certain broker is authorized to operate.  Investors can check their service providers’ status of registration, to avoid being defrauded.