OctaFX Warns Against Social Media Scammers & Clone Firm

It's not every day that a broker has to warn customers about a company that is acting as its Clone Clone A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for Read this Term - usually, that task falls to a local regulator. But this Tuesday, OctaFX, a retail broker who is based in St Vincent and the Grenadines, did just that.

In a short statement posted on its 'news' page, the broker said that scammers have been using a very similar URL - www.o-ctafx.com - to its own.

Access to the website is currently restricted by Google. Thus, determining what the scammers are doing isn't easy.

If they are like most clone firms, however, they will simply be tricking people into depositing with them and then never giving the money back.

[embed]https://twitter.com/OctaFX/status/1095293813248139264[/embed]

OctaFX scammers - operating via social media

More interesting is the fact that OctaFX said that customers should protect themselves from influencer scams which are being carried out on social media.

Unfortunately, the broker did not elaborate on who the scammers are or om what social media platforms they are operating.

In the past, scammers, using the OctaFX logo to lend themselves an air of legitimacy, have targeted people through Instagram.

Last month, Finance Magnates covered the burgeoning FX 'influencer' or 'educator' industry.

Though they do not operate brokers, these people pose as trading experts, often enticing prospective customers with promises of getting rich quick, but actually, work as affiliate marketers for brokers.

In some cases, these are legitimate companies. AvaTrade, for example, has used affiliate marketers in the past.

But many of them are not. One famous 'educator,' FxLifeStyle, encourages traders to sign up to a broker that is based in Dominica.