Financial Conduct Authority (FCA) issued a notice
flagging a company purporting to be APM Capital Markets Limited, an affiliated
company to the entity that bought BUX Financial Services.
According to the regulator, the clone firm uses the
website www.buxtrmarkets.com to mimic the legitimate www.buxmarkets.com. Clone
firms are illegal entities that impersonate authorized financial companies in
order to deceive potential investors.
Fraudsters create fake websites, emails, and phone
numbers, mimicking the details of genuine firms that are regulated by the
Financial Conduct Authority (FCA) in the UK.
Why You Should Be Concerned
Clone firms aim to trick people into thinking they are
dealing with a legitimate business, leading to financial losses for
unsuspecting victims. The scammers behind these clone firms often use similar
names, logos, or contact information, making it difficult for investors to
differentiate between the real and fake companies.
In this case, the fraudsters are pretending to be APM
Capital Markets Limited, a legitimate financial firm. The regulator warned that
falling for a clone firm means that one will not be protected by the UK’s
Financial Services Compensation Scheme (FSCS), which safeguards clients if a
financial firm goes out of business.
Additionally, since clone firms are unregulated, users
will not also have access to the Financial Ombudsman Service if you have a
complaint. You risk losing your entire investment, with little chance of
recovering your funds if the scam is uncovered.
Identifying Clone Firm
Clone firms often create websites with similar URLs to
real companies, like www.buxtrmarkets.com, which mimics the legitimate
www.buxmarkets.com.Scammers may provide fake phone numbers, emails, and postal
addresses that seem similar to the real firm’s details.
The regulator has also urged the public to use the
FCA’s Financial Services Register to confirm the firm’s contact details,
especially if they are dealing with them for the first time. The FCA advised clients that investors should always
check whether a financial firm is authorized before engaging with them.
This article was written by Jared Kirui at www.financemagnates.com.
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