The Financial Conduct Authority (FCA), the regulatory body for financial services in the UK, has issued a warning to the public about an unauthorized "clone firm" that is posing as an authorized financial services provider, IG Markets Limited, a UK-listed broker.

Genuine vs. Imposter: FCA's Warning about Clone Firm

The clone firm, operating under the name "ICT Market 24" and using the website "ictmarket24.com", falsely claims to be an FCA authorized firm. The FCA has identified this fraudulent entity as a potential threat to consumers who may unknowingly deal with them.

The FCA has discovered that fraudsters may also provide other fictitious details, such as email addresses, telephone numbers, postal addresses, and Firm Reference Numbers, to create a false sense of legitimacy.

These deceptive tactics may be mixed with genuine details of authorized financial firms, making it more challenging for individuals to distinguish between legitimate and fraudulent entities.

One of the key concerns raised by the FCA is that individuals who deal with unauthorized or clone firms may not have access to important safeguards. If a problem arises in their dealings with these cloned firms, they won't have recourse to the Financial Ombudsman Service, and they won't be protected by the Financial Services Compensation Scheme. This lack of protection means that individuals are at risk of losing their money if the firm they are dealing with goes out of business.

To ensure the legitimacy of any financial service provider, individuals are encouraged to check the Financial Services Register maintained by the FCA. This register provides information about authorized firms, details on the protection consumers can expect, and contact information for authorized firms.

If individuals are contacted unexpectedly by a financial business or individual, they are urged to verify the legitimacy of the communication using the contact details found on the FCA's Financial Services Register.

This warning from the FCA serves as a reminder of the vigilance necessary when dealing with financial service providers and underscores the importance of verifying the authorization and legitimacy of firms operating in the financial industry.

Finalto Pro vs. Finalto Financial Services Limited: Distinguishing Fact from Fraud

A tweet from the FCA revealed that a total of 54 entities were warned as unauthorized or clone firms last week. Finance Magnates reported that the FCA had raised concerns about Finalto Pro, a suspected clone firm falsely claiming an association with FCA-regulated Finalto Financial Services Limited. Finalto Pro employs deceptive tactics, including using the same name, email and website as the legitimate entity.

We’ve issued 54 new #FCAwarnings to unauthorised and clone firms in the last 7 days.

Protect yourself and find all recent warnings https://t.co/0qLeqfKYJ0 pic.twitter.com/BKTDGeICCu

— Financial Conduct Authority (@TheFCA) November 10, 2023

The FCA has warned consumers that engaging with Finalto Pro leaves them without protection from the Financial Ombudsman Service and the Financial Services Compensation Scheme.