Scammers have broadened their target base as they are now trying to dupe the public by adopting the trademarks of legitimate organizations. The Financial Commission (FinCom), a self-regulatory organization (SRO) in the financial services industry, has identified a fake website operating as Crypto Exchange Association, which is illegally using the SRO's broker members' information and mimicking the private regulator's dispute resolution services. FinCom believes that the act is possibly aimed at defrauding the public.
Illegal Use of FinCom's Trademarks
According to FinCom, the scam website copied the details of some of its members without their consent in an effort to legitimize their services and possibly scam brokers listed on the fake website’s Members page. The site also falsely lists FinCom's partners on its Partners page. This information was directly copied from FinCom's website, the organization said.
Additionally, FinCom pointed out that the membership certificates listed on the scam website are similar to the official certificates it usually issues. The forex mediator noted that it was recently contacted with information that indicated the website is purporting to offer fictitious services in what appears to be an attempt to deceive and defraud the public.
Moreover, the website is strikingly similar to a different but now defunct website: https://cryptoconductauthority.com/, which previously offered fictitious services and was shut down due to the efforts of the SRO.
"This information led The Financial Commission to immediately notify all relevant parties that the perpetrator is an illegitimate website that is not associated with The Financial Commission in any way and is falsely indicating that several broker members of The Financial Commission are members of such website as well," FinCom explained in a statement. "Moreover, the Financial Commission takes all necessary actions, including reporting to law enforcement authorities and initiation of legal proceedings against 'catfish', in order to protect against and prevent all fraudulent activities against its clients in the future."
On its fraudulent website, Crypto Exchange Association described it as "a team of independent industry experts and professionals that deals with different cryptocurrency cases on an everyday basis," adding that: "Our dispute resolution commission can help resolve any dispute and provide professional consultation for most issues possible. Today, we can boast of more than 25 years of experience and successful dispute resolution practices for both traders and brokers."
It further stated: "While being a completely independent organization, Crypto Exchange Association is recognized as a specialist team, striving to create an open, educational, and effective space for brokers and traders. Our interest is to provide knowledge, generate clear responses, give instructions, and expand community awareness."
These statements and services were copied from the Financial Commission. The website layout of the fraudulent platform also resembles that of the Financial Commission.
False Claims
Further, the fraudulent platform listed Finance Magnates as one of its partners, which is entirely false. It also listed a few other names as partners.
The Crypto Exchange Association also listed several big and small brokers, including IG Group, FXOpen, and FXClub, as its members. Most of these brokers are members of the Financial Commission.
On top of this, the fraudulent platform claims to be based in London. However, a Whois lookup revealed that the domain was registered in Alexandria, Virginia, US earlier in June.
Meanwhile, the dispute resolution body recently flagged a clone which was using a very similar name and listing some of its expelled brokers as members of FinCom.
