Clone Firm Impersonates Legitimate IG Markets: FCA Warning

<p>The
Financial Conduct Authority (FCA), the regulatory body for financial services
in the UK, has issued a warning to the public about an unauthorized "clone
firm" that is posing as an authorized financial services provider, IG Markets Limited, a UK-listed broker. </p><p>Genuine
vs. Imposter: FCA's Warning About Clone Firm</p><p>The
clone firm, operating under the name "ICT Market 24" and using the
website "ictmarket24.com," falsely claims to be an FCA authorized
firm. The FCA has identified this fraudulent entity as a potential threat to
consumers who may unknowingly deal with them.</p><p>The FCA has discovered that fraudsters may also
provide other fictitious details, such as email addresses, telephone numbers,
postal addresses, and Firm Reference Numbers, to create a false sense of
legitimacy. </p><p>These
deceptive tactics may be mixed with genuine details of authorized financial
firms, making it more challenging for individuals to distinguish between
legitimate and fraudulent entities.</p><p>One
of the key concerns raised by the FCA is that individuals who deal with
unauthorized or clone firms may not have access to important safeguards. If a
problem arises in their dealings with these cloned firms, they won't have recourse to
the Financial Ombudsman Service, and they won't be protected by the Financial
Services Compensation Scheme (FSCS). This lack of protection means that
individuals are at risk of losing their money if the firm they are dealing with
goes out of business.</p><p>To
ensure the legitimacy of any financial service provider, individuals are
encouraged to check the Financial Services Register maintained by the FCA. This
register provides information about authorized firms, details on the protection
consumers can expect, and contact information for authorized firms. </p><p>If
individuals are contacted unexpectedly by a financial business or individual,
they are urged to verify the legitimacy of the communication using the contact
details found on the FCA's Financial Services Register.</p><p>This
warning from the <a href="https://www.financemagnates.com/tag/fca/" target="_blank" rel="follow">FCA</a> serves as a reminder of the vigilance necessary when
dealing with financial service providers and underscores the importance of
verifying the authorization and legitimacy of firms operating in the financial
industry. </p><p>Finalto
Pro vs. Finalto Financial Services Limited: Distinguishing Fact from Fraud</p><p>A
tweet from the FCA revealed that a total of 54 entities were warned as
unauthorized or clone firms last week. <a href="https://www.financemagnates.com/">Finance Magnates</a> reported
that <a href="https://www.financemagnates.com/forex/fca-cautions-against-clone-firm-impersonating-finalto/">the
FCA had raised concerns about Finalto Pro</a>, a suspected clone firm falsely
claiming an association with FCA-regulated Finalto Financial Services Limited.
Finalto Pro employs deceptive tactics, including using the same name, email and website as the legitimate entity. </p><blockquote><p lang="en" dir="ltr">We’ve issued 54 new <a href="https://twitter.com/hashtag/FCAwarnings?src=hash&amp;ref_src=twsrc%5Etfw">#FCAwarnings</a> to unauthorised and clone firms in the last 7 days. Protect yourself and find all recent warnings <a href="https://t.co/0qLeqfKYJ0">https://t.co/0qLeqfKYJ0</a> <a href="https://t.co/BKTDGeICCu">pic.twitter.com/BKTDGeICCu</a></p>— Financial Conduct Authority (@TheFCA) <a href="https://twitter.com/TheFCA/status/1722947289440760079?ref_src=twsrc%5Etfw">November 10, 2023</a></blockquote><p>The
FCA warns consumers that engaging with Finalto Pro leaves them without
protection from the Financial Ombudsman Service and the Financial Services
Compensation Scheme. </p>

This article was written by Tareq Sikder at www.financemagnates.com.