FCA Calls Out Clone Firm of the London Metal Exchange

It may only be Monday, but already, the Financial Conduct Authority (FCA) has added a new suspected scam to its warning list. Today, the regulator has highlighted the Financial Exchange as a clone firm.

As per the warning released today, the Financial Exchange, which is targeting residents in the United Kingdom, is fraudulently using the details of an authorized and legitimate company.

As the British regulator outlines: “Fraudsters are using the details of firms we authorise to try to convince people that they work for a genuine, authorised firm… fraudsters usually use this tactic when contacting people out of the blue, so you should be especially wary if you have been cold called. They may use the name of the genuine firm, the 'firm reference number' (FRN) we have given the authorised firm or other details.”

In this case, the Financial Exchange, which operates via the following website - https://financial-exchange.com - is claiming to work for the London Metal Exchange Limited, a legitimate company with the firm reference number 207387.

According to its website, which is available in English and French, the Financial Exchange offers a range of “safe investments” such as foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term), cryptocurrency, life insurance, securities accounts and more.

According to the watchdog, the clone firm claims to be based at 85 Great Portland Street, London, W1W 7LT and its primary email address is contact@financial-exchange.com.

Another Day, Another Suspicious Entity Flagged by the FCA

Unfortunately, scams within the financial industry, particularly FX, Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and binary options, are prevalent, with fraudsters trying to steal from consumers around the world.

As Finance Magnates reported just last week, the UK regulator added Safe Regulated Investments to its warning list. Despite claims from the entity, which offers investments in fixed-income products, that it is regulated by the FCA, the warning from the regulator states otherwise.

Before investing with a trading provider, it is important for investors to check the warning lists from their local regulator, to see whether a warning has been posted. Furthermore, consumers should look out for warning signs, such as promises of unlikely high returns, or unsolicited contact.