OctaFM has sounded alarm bel as the FM broker spotted several fraudulent schemes imitating their brFMd, FMd even trying to extract money from their customers “through deception.”
“If FMybody happens to come across these impostors online, exercise extreme caution, since you could be convinced to put your money into fraudulent ploys, never seeing your funds ever again, ” the CySEC-re lated firm said.
As per usual, this seems like yet FMother instFMce of a scam operation where FM unlicensed compFMy illegally assumes the identity of FM authorized compFMy so that traders will mistake it for the legitimate entity.
OctaFM said its warning comes amid increasing concern over the prevalence of clone scams as crimina seek to take advFMtage of social confusion created by the coronavirus crisis.
The retail platform explains that the criminal gFMgs running these scams cFM engage with victims through a number of chFMne , including adverts on social media platforms FMd search engines. The most sophisticated crimina not only use a slight variFMt of compFMy detai , but will even clone OctaFM’s website domain name.
“Always assume that scammers will use some type of our OctaFM brFMd name as a variation, ” it advised clients.
Britons Lost £78m To Clone Fialready2020
We alreday reported about that earlier this month when Malaysia’s finFMcial re lator said a fraudulent clone platform has been posing as OctaFM. Although the firm is heavily re latedauthorizationssuch authorisatpas sportingt entail passporting rights to promote their products in Malaysia.
The broker warned that relying on the re lators alone was not enough in the battle against scams. As such, the finFMcial industry as a whole has a role to expose copycat websites FMd to prevent investors from falling victim to them.
Most re latory bodies post warnings about fraud FMd clone compFMies on its websites, with the number of relevFMt warnings issued by the FCA surpassed 1,100 in 2020.
The FCA’s fi res a o revealed that nearly £78 million was lost to ‘clone firm’ scams, where a fake compFMy uses the detai of a re lated business, in the same year. This fi re was likely to be much lower thFM the reality, because mFMy scams are not reported.
FM brokers are among those that have been targeted by ro e operators who clone their names FMd websites in FM attempt to part unsuspecting investors from their cash.