FCA alerts traders to be wary of HYCM clone

abdelaziz Fathi

The City watchdog has sounded an alarm over yet another fraudulent clone, this time shedding light on a firm called ‘HYCMFX’ that has been posing as the UK-based FX trading brand, HYCM.

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HYCM is the global brand name of Henyep Capital Markets (UK) Limited, HYCM (Europe) Ltd, Henyep Capital Markets (DIFC) Ltd and HYCM Limited, a global corporation founded in 1977, operating in Asia, Europe, and the Middle East.

Although HYCMFX doesn’t explicitly claim to be licensed by the FCA, they are in fact using the details of regulated companies in an attempt to convince investors that they work for a genuine firm.

The FCA warning comes just a few days after the authority warned the public against the suspicious operation of Eurotrade.co, which has been revealed to be manipulating investors by using a similar name to the CySEC-regulated firm Eurotrader Group.

FCA has been at the forefront of the fight against the financial fraudsters, recently expanding its list of dubious brokers almost on a daily basis.

Fraudsters in the financial services space have numerous methods for trying to get their hands on victims’ cash and one tactic that is becoming increasingly common is the fake or cloned website. In a cloned scam, the fraudsters copy or “clone” a legitimate website. The copy of the website can be astonishingly exact, or just an approximation with copied logos, but the intent is ultimately to separate victims from their money, credit card number, or login credentials.

The spread of fraudulent clone websites that mimic the sites of reputable financial entities is nothing new, but regulators have yet to get to grips with the rampant trend.

The FCA tells consumers that “fraudsters usually use this tactic when contacting people out of the blue, so you should be especially wary if you have been cold called.”

The UK watchdog itself was cloned earlier this year, when fraudsters imitated the FCA’s website and created a fake page urging firms to register for annual fees.

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