Another clone firm has appeared on the Financial Conduct Authority’s (FCA) radar this week, with the Britsh regulator publishing a warning on its website against CWG Markets.
According to the warning, CWG Markets is a clone firm of CWG Markets Ltd, a contract-for-difference (CFD) and foreign exchange (forex) broker, which is a legal entity authorized by the FCA.
“This FCA authorised firm that fraudsters are claiming to work for has no association with the ‘clone firm.’ It is authorised to offer, promote or sell services or products in the UK,” the regulator said.
The clone entity, however, doesn’t appear to offer forex or CFD trading. Instead, through the URL https://cwg-markets.com it claims to be a firm that provides wealth management and offers a number of investment accounts.
Specifically, the UK watchdog has provided the following details belonging to the fraudulent entity:
Name: CWG Markets
Telephone: 01 82 88 45 36; 01 87 21 19 45
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The legitimate company, CWG Markets Ltd, has the following details:
Firm Name: CWG Markets Ltd
Firm Reference Number: 785129
Address: 76 Cannon Street, 3rd Floor, London, EC1R 5HL
Telephone: 020 3947 1777
“Be aware that the scammers may give out other false details or mix these with some correct details of the registered firm,” the FCA warns in the statement published today.
Clone Firms Target FX and Crypto Companies
As the name suggests, clone firms are fraudulent entities which copy details of a legitimate firm, such as their name, website, address, registration details, etc. Some even go to the lengths of completely copying a firm – from their website, to brand, in order to trick investors into thinking that they are the actual legitimate firm.
Clone firms are a big problem in the foreign exchange (forex) and cryptocurrency sectors. As Finance Magnates has reported, Tickmill, Dukascopy Bank and broker-dealer ICAP, among others, have all been targeted by clone firms.