The U.K. Financial Conduct Authority (FCA) just announced that it has warned the public against yet another “clone company”. Such entities purport to be regulated by the watchdog, when in fact they are merely taking some form of the name of a regulated entity to entice customers to deposit their funds.
GGM Forex has been exposed by the U.K. regulator for claiming that it is licensed under the FCA reference number of ayondo global markets, formerly known as Gekko Global Markets, hence the GGM abbreviation used by the fraudsters.
The UK watchdog strongly advises against dealing with clone companies and encourages both clients and brokers who have become victims of similar fraud to report it to the relevant authorities.
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ayondo has been at the forefront of targeted efforts for keeping client funds safe, effectively increasing by 10 times the official covered funds warranty provided by the U.K. Financial Services Compensation Scheme (FSCS). The company has bought insurance for its clients for up to £500,000 pounds.
The clone company’s website boasts the reference number of ayondo on top of the page and a simple search in the register of the FCA would expose the discrepancy, however, there are many clients of financial services providers who do not thoroughly check their brokers.
In order to be protected from such schemes, clients of global brokers should meticulously check the regulatory claims of brokers in order to avoid being scammed into depositing their funds with fraudulent companies such as GGM Markets.