FCA warns of ATFX Global Trading / ATFXcoin

abdelaziz Fathi

In its latest clampdown against the specific type of ‘clone fraud’, the Financial Conduct Authority (FCA) has warned local investors to watch out for a company called ATFX Global Trading / ATFXcoin.

binary-clones

The two associated brands are seemingly impersonates the financial services group, AT Global Markets (UK) Limited.

Although it did not explicitly accuse the copycat website of pretending to be the multi-regulated broker, the City watchdog said that the main tactic of the scammers was to fraudulently claim that they had the relevant permissions to operate.

To this end, ATFX Global Trading was trying to usurp some legal information of AT Global Markets and refer consumers, for example, at the official website of the FCA it tried to convince them that it is indeed the authorized firm.

Furthermore, the ATFX clone had been taking advantage of its misleading name to solicit traders who are based in the United Kingdom. The firm was not only identifying itself as a well-known online trading company working under false pretenses, but it was operating without authorization as well. Consumers are thus deceived, thinking they are dealing with a regulated entity. That alone is a major violation of British law.

The FCA itself was cloned

As FinanceFeeds reported, ATFX is entering into a new phase of growth, which will see the broker expand its geographical footprint across Asia, as well as enhance its product offering, focusing on localisation. At the same time, the firm published its financial results for the second quarter, revealing a significant increase in turnover for the period.

The City watchdog said in recent statements that it saw an increasing number of cases of the problem and that FX brokers are particularly vulnerable. The FCA pointed out that a common hallmark of fraud, which are claims of too-good-to-be-true gains, is often in place with this type of scam too.

While this phenomenon is rising in prevalence, some clone scams contacted the FCA itself claiming to represent regulated firms and asked to change the legitimate company’s contact details on the register, saying details were out of date. As per usual, this action aims to make the clone firm appear genuine and give its own phone number and website details to potential victims so that traders will mistake it for the legitimate entity.

Read this next

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

<