The UK’s Financial Conduct Authority (FCA) on Thursday published a cautionary note about Multibank Group, which has been exposed as offering financial products in the United Kingdom without authorization.
Although the City watchdog didn’t explicitly accuse Multibank of operating a clone entity, the company doing business as https://forex.com.vn/ is obviously taking advantage of its misleading name.
However, Forex.com.vn identifies itself as a representative of MultiBank Group in Vietnam and doesn’t claim any specific relationship with any FCA-regulated brands. But soliciting traders who are based in the United Kingdom without authorization is a major violation of British law.
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For dummy traders, it seems like another instance of a copycat broker that assumes the identity or affiliation of an authorized company, so that traders will mistake it for the legitimate entity. The genuine company this time is Gain Capital’s well-known retail brand, FOREX.com.
Clone firms are not an unusual occurrence in the industry, as fraudsters have grown increasingly resourceful in recent years. A commonly adopted tactic is for scammers to advertise an illegal operation as a reputable brand or entity.
The FCA encourages traders or those considering online trading to exercise caution, strongly advising against funding an account or investing via this specific company. Anyone who chooses to sign up with the impostor should bear in mind that they will not receive the financial authorities’ assistance should things go awry.
Thursday’s announcement is the latest in the FCA’s series of warnings about clone firms posing as legitimate, approved businesses to con UK consumers into making payments for investment services.