The Financial Conduct Authority (FCA) has issued a warning on Monday against Coin Boost Inc. for providing financial services or products in the United Kingdom without authorization.
Coin Boost Inc. operates at http://www.coinboost.info/ and according to its website, offers investment plans for bitcoin traders and markets itself as the most “secured place to invest your bitcoins.” It says it is a registered legal international investment company in the US and its activities are regulated by the US international business authorities. It also states it acts in accordance with US legislation.
The broker claims to have an office at 313 Patterson Road, Brooklyn, New York, UNITED STATES OF AMERICA, 11209.
The British regulatory body has yet again issued a warning to only deal with financial firms that have been authorized by the FCA. Individuals can check the Financial Services Register to see whether a company is authorized.
How Entrepreneurs Fail at Blockchain StartupsGo to article >>
The watchdog also reminded UK investors in a statement that if something goes wrong while trading with unauthorized brokerages, they will not be eligible to receive assistance from the FCA.
Warnings like these are becoming increasingly common for the FCA, as it has repeatedly been urging the public to be alert to the growing threat of unauthorized companies operating and targeting UK citizens without a license.
This plea follows a recent report that showcased the rise of online investment fraud, which Finance Magnates reported on in January. The report found that investors had lost an average of GBP 87,410 (USD 118, 379) per day during 2017.
One of the conclusions reached by the FCA’s report is that scammers’ tactics have shifted and many now utilize social media and other online marketing methods to reach potential investors, instead of approaching them through traditional tactics such as cold calling.
In addition to unauthorized companies acting in the UK without a license, there is also an increasing trend of scam operations where an unlicensed company assumes the identity of an authorized broker. Just on Tuesday, the FCA released a warning against an ETX Capital clone.