The Securities and Futures Commission (SFC), a financial regulator in Hong Kong, has added a new entity which it has labeled as suspicious this Wednesday – Redsolarcapital.Com.
According to the warning from the regulator, Redsolarcapital.Com, which operates via the website www.redsolarcapital.com, is a “suspicious website” and has been categorized as so, on its warning list.
The reason this website has appeared on the agency’s website is because of its name, which is eerily similar to another firm, which is authorized to provide financial services in Hong Kong – Red Solar Capital Limited.
Because of this, it is likely that Redsolarcapital.Com is actually a clone firm, and has copied the name of a legitimate firm in order to trick investors into thinking it is associated with SFC-licensed Red Solar Capital Limited.
Clone firms, as the name suggests, are scam operations which copy or “clone” another company. They might do this by choosing to operate with a similar name, as it appears today’s entity has done, or they might steal other information such as license and registration details with a financial regulator, address details, and other similar information.
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The main aim of the game for fraudsters is to trick consumers into believing they are legitimate. Whether that means they claim to be associated with or a representative of a legitimate firm or provide a false license or other details.
When it comes to scams, consumers should be very wary of any unsolicited contact. That is when a company reaches out to you when you have given them no indication that you are interested in doing business with them. This is one of the most common tactics of scammers.
Traditionally, this used to be done via telephone, referred to as cold-calling. However, with the rise of technology and social media being present in many households, fraudsters are now able to contact potential victims through multiple platforms, so consumers need to be alert.
Taking a look at Redsolarcapital.Com’s website, the company claims to offer financial services, wealth management, and estate planning. In terms of financial services, the entity provides global equities, commodities, foreign exchange (forex) and more as ways to make money for its clients, the website states.
However, when considering the fact that the SFC has flagged this website as suspicious, it is best to err on the side of caution and avoid dealing with this firm and especially, avoid transferring them any money.