Attempts to dupe prospective clients into placing their money into fraudulent hands have become complex since the FX industry’s high technology and regulatory environment has become much more secure.
In some cases, convoluted schemes take place, however there are still those who seek to take a much more basic approach. Yesterday, the Hong Kong Monetary Authority (HKMA) issued a warning to potential FX traders that a fraudulent website had been brought to the HKMA’s attention bearing a very similar domain name to the Royal Bank of Scotland, a multinational financial giant with a large institutional FX division, yet is in absolutely no way connected whatsoever.
The website in question, www.rbsfx.co.uk may appear to be associated with RBS, but when contacted by the HKMA as part of its regulatory responsibility, RBS confirmed that the bank has absolutely no connection or association with this website.
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Pattern Developing Internationally?
HKMA has now reported this matter to the Hong Kong Police for further investigation, signifying another example of a regulator apprehending a nefarious website which seeks to dupe potential FX traders by appearing to be connected to an established FX firm.
In October this year, Cypriot regulatory authority CySEC issued a warning of similar intent, due to its discovery of an unlicensed and unregulated company in the name of Depaho FX soliciting clients in its jurisdiction, which bore a similar name to CySEC regulated bforex white label GTCM, which is a brand of Depaho Ltd.
At that particular time, CySEC reinforced that Depaho Ltd is regulated and operates according to Cypriot licensing laws, and for investors to ensure that they pay specific attention to the actual name and do business with the licensed firm, proving that in the eyes of the regulatory authorities of the world, imitation does not amount to flattery.
With respect to yesterday’s publication of a warning by HKMA, the matter is now in the hands of the Hong Kong Police Commercial Crime Bureau, such is the severity of imitating bona fide companies.