An unregulated binary options entity seems to be targeting Italian traders with its marketing efforts despite not having a license to operate in the country, Italy’s watchdog warns. The name of the entity and its website domain also seem to steal the reputation of an established broker.
FX24OPTION.com is the domain of the entity in question, and the small print claims the website is owned by a company called BEE trade Ltd. based in the British Virgin Islands (BVI). No further details were given on this BVI company, but the name can be meant to simply trick clients to think it is related to another broker, Dublin based BEE Options.
The domain address itself is obviously very similar to that of the leading binary brand 24option. This attempt to ride the coattails of another established company is usually called in the industry a clone scam. In this case however, the FX24OPTION website does not claim to be regulated by CySEC and displays the specific license number of 24option as most clone scams do when they steal the identity of another firm.
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24option is one of the biggest binary options brands in the world and invests heavily in promoting its brand further. It recently marked the opening of its London office by launching a city-wide taxi advertising campaign, with hundreds of branded black cabs emblazoned superside advertisements. 24options also invests in sport sponsorships including a partnership agreement with one of Italy’s leading teams, the Juventus Football Club. This makes its reputation valuable for a scam that would want to claim another firm’s name.
The warning was made by the Commissione Nazionale per le Società e la Borsa (CONSOB), the government authority of Italy responsible for regulating the country’s securities market.