The UK Financial Conduct Authority (FCA) warns clients about the RoboForex clone RoboxFX which is similar to the RoboForex brand.
The Financial Conduct Authority (FCA), the UK financial markets watchdog, has recently warned of the umpteenth fraudulent entity of the fake shell company RoboxFX, cloning the RoboForex brand.
RoboForex has continued to develop for almost 15 years into a trusted online broker supervised by the International Financial Services Commission (IFSC).
In 2013, the fintech company introduced its EU subsidiary RoboMarkets, complying with CySEC (Cyprus Securities and Exchange Commission) regulations. In contrast, RoboxFX does not display its office address accurately and chooses to claim false details in Palo Alto, California.
The scams are often referred to as 'clone companies'. They impersonate existing legitimate entities to create an impression of trustworthiness or convince investors of their legitimacy. This type of fraudster may provide different false information or mix it with some correct information about the registered company.
Sequentially, the FCA is at the forefront of fighting fraud in the financial industry. Cloning refers to an attempt to hijack the identity of an existing legal entity, providing other false details to give the impression of reliability or legitimacy.
The UK regulator emphasized that dealing with illegal financial companies results in a lack of protection for funds from the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS). Checking information from the Financial Services Register avoids the spread of cases of fraud in investment or trading.
See Also: RoboForex Review