The New Zealand Financial Markets Authority (FMA) has highlighted a duo of clone websites that are misrepresenting information online. The sites are purporting to represent regulated entities with one of the venues purporting to be MahiFX and the other one presenting itself as Lan’s Enterprise Limited.
Both sites were added to the FMA blacklist of online entities that are misrepresenting themselves to deceive clients into sending money to the firms. The FMA move is a continuation of a large campaign to put an end to unregulated entities to misuse the data of legitimate businesses.
Targeting Chinese clients
Both websites have the Chinese consumer in mind, as many victims of online fraud that are based in China are not diligent enough to check whether or not they are dealing with a legitimate counterpart. The efforts of Chinese authorities to clean up the sector should be primarily focused towards banning entities such are the clone websites that the FMA highlights.
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The misuse of company data, design language, and the names of the management of a legitimate firm are reasons enough for authorities to exercise vigilance and shut down such entities. Both websites are in Chinese.
The disturbing association between legitimately operating companies and clone firms has been a big risk for the industry worldwide for years. A MahiFX spokesperson explained to Finance Magnates that the company will do everything possible to have the fraudulent website mahi-fx.com removed.
Prospective clients of financial services are warned to avoid dealing with companies that are not in any way affiliated to regulated firms. Both websites, which were singled out by the New Zealand FMA, have no connection to MahiFX Limited and Lan’s Enterprise Limited respectively
Clients are advised to carefully assess the counterparts with whom they are trading online and consistently look for red flags when communicating with online businesses.