The financial markets watchdog in Malta, Malta Financial Services Authority (MFSA), today unmasked another fraudulent entity, this time bringing to light the flagged clone FXDD TRADE which was added to its warning list of unregulated entities.
The watchdog states in its announcement that the suspicious company is not licensed or otherwise authorised by the MFSA to provide any investment or other financial service which is required to be licensed or authorised under Maltese law. The public should therefore refrain from undertaking any business or transactions with the above-mentioned entity.
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Although not blatantly claiming to be MFSA regulated, it is clear from visiting its website that FXDD TRADE is indeed attempting to mislead investors that it is offering a legal product through using the details of an authorised firm operating under the name FXDD Global .
The original company is a well-established entity that has been serving its clients for several years and it has a presence in Valletta Waterfront, Floriana, Malta. FXDD is licensed by Malta Financial Services Authority (ID# C48817) to offer a comprehensive set of financial services and also approved to provide cross border services across the EU / EEA under European passport rights.
FXDD TRADE is a common type of fraud known as ‘cloned firms’, which usurp the identity of an existing authorsed entities in order to give the appearance of trustworthiness or legitimacy, thereby fooling investors.
Besides clarifying that the firm in question lacks the proper authorisation to be targeting local customers, the MFSA also said in its official statement that it strongly advises investors to only deal with financial firms that are authorised, and check its register, which can be accessed through http://www.mfsa.com.mt/pages/licenceholders.aspx, to ensure they are.