FCA Flags Crypto Clone Firm AGM Invest as Crypto Scams Rise

It might only be Monday morning, but already the Financial Conduct Authority (FCA) has published a statement on its website, warning against AGM Invest, which it believes is a clone firm.

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 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) and cryptocurrency sectors. As Finance Magnates has reported, Tickmill, Dukascopy Bank and broker-dealer ICAP, among others, have all been targeted by clone firms.

“Be aware that the scammers may give out other false details or mix these with some correct details of the appointed representative firm,” the British regulator cautioned in its warning against AGM Invest.

AGM Invest Claims to be Regulated in Belize

The warning from the FCA this Monday against AGM Invest, which also goes by the name of AGM Group, states that this entity is a clone firm of AGM Financial Services Ltd, which offers residents of the UK insurance services.

The clone firm, however, which operates via the website https://agm-invest.com, claims to be a trading provider for 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. It states that it is regulated in Belize by the International Financial Services Commission (IFSC).

Via its website, the clone firm states: “AGM Goup is a retail FX broker incorporated in Belize and licensed by IFSC. AGM Group is created to provide low cost trading solutions to retail FX traders. AGM Group integrates new technology and high quality services, and aims to be transparent, efficient, and automatic in nature.”

In the warning, the UK regulator states: “This FCA appointed representative firm that fraudsters are claiming to work for has no association with the ‘clone firm.’”

Instead, the regulator provides the following details as:

Firm Name: AGM Financial Services Ltd

Firm Reference Number: 790622

Address: 1 Marschal Court, Stirling, Stirlingshire, FK7 7UY

Telephone: 07724 749 150

Email: alex@agmfs.co.uk

Website: www.agmfs.co.uk

Crypto Scams are on the Rise

Financial scams, particularly regarding cryptocurrencies, are on the rise. As Finance Magnates reported, £27 million ($34.4 million) was lost by investors to FX and cryptocurrency-related scams in the 2018/2019 fiscal year.

According to the FCA, authorities received 1,834 scam reports last year. That was almost a four-fold increase on the prior twelve month period.

Although the FCA did not disclose the makeup of the number of scams, the Autorité des marchés financiers (AMF) said in its annual report that there had been a switch in scammers’ preferred asset class, with the number of crypto scams skyrocketing in 2018.