In a recent warning that feels a bit like déjà vu for those following the financial markets, the UK’s Financial Conduct Authority (FCA) has spotlighted a new clone firm scandal. This time, the clone, operating under the names Eutradex and its website eutradex.com, has been masquerading as the legit Cyprus-based investment platform Eurotrader. It’s a classic bait-and-switch, with Eutradex leveraging Eurotrader’s good name to appear above board.
The FCA’s alert detailed that Eutradex has been rather bold, listing on its site the authorized firm’s Financial Reference Number (FRN) and registered address, a move aimed squarely at duping investors into thinking they’re dealing with the real deal.
Adding to the drama, the FCA also waved a red flag at another clone culprit, First Abu Dhabi Bank, United Kingdom, via its website 1stabudbk.com. These cases are textbook examples of ‘cloned firms’ scams where fraudsters clone the identity of an authorized entity to woo investors with a facade of legitimacy.
The FCA, in its perpetual cat-and-mouse game with financial fraudsters, emphasized that Eutradex lacks the proper authorization to target UK customers. It strongly advised investors to engage only with authorized firms and double-check the Financial Services Register for verification. The watchdog’s message is clear: if you hand your money to an unauthorized firm, don’t count on the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) to bail you out if things head south.
The trend of cloning, where scammers create a near-identical or roughly similar website of a legitimate entity, isn’t new, but it’s evolving. These digital doppelgängers range from eerily accurate to roughly approximated sites sporting copied logos, all designed to fleece unsuspecting victims.
This surge in clone scams underlines a broader issue within the financial services sector, as regulators scramble to keep pace with the cunning of fraudsters. The FCA’s note of caution also highlighted a common tactic among scammers: reaching out to potential victims out of the blue, making any unsolicited contact a red flag.
Interestingly, the FCA itself hasn’t been immune to impersonation attempts. Earlier this year, fraudsters cloned the FCA’s website, creating a bogus page prompting firms to register for annual fees. It’s a stark reminder that in the digital age, vigilance is paramount, and if something feels off, it probably is.
