Consob, the Italian financial markets regulator, announced yesterday (Wednesday) that it has blocked five websites belonging to unlicensed companies offering access to financial services. Among them were clones of the popular brokers, ActivTrades and ETRADE.
Consob Block E*TRADE and ActivTrades Clones
According to a press release published by Consob, the regulator has requested Internet Service Providers (ISPs) in the country to block access to the websites of Binetrix, Bitbinx, FX Modex, and clones of the previously mentioned brokers.
Active Trades Ltd. provides services from the 'theactivetrades.com' address, while E-trade operates from 'e-trade.cc'. Scammers, in this case, do not use the website design and logo of licensed entities, but they have practically the same names. This can potentially mislead customers. The first website remains accessible, while the second one was unable to respond at the time of writing.
In the financial industry, a clone broker is a dishonest entity that uses the data of a legal, regulated broker to deceive investors, making them believe they are dealing with a real regulated broker.
Consob reports that since July 2019, when it gained the ability to ban access to fraudulent websites, it has already blocked 919 of them.
"Consob draws investors' attention to the importance of adopting the greatest diligence in order to make informed investment choices, adopting common sense behaviors, essential to safeguard their savings," the Italian regulator reminds in an official statement.
Increased Attacks of Clones
The recent activity of Consob shows that clones of well-known brands in the financial market are a persistent and ongoing problem. At the end of May, the regulator warned about a clone of the Northern American Derivatives Exchange (Nadex), a US-based platform for retail investors allowing short-term binary options trading. A few weeks earlier, it had blocked access to the XTB Empire site, a clone of the publicly traded broker, XTB.
Other European regulators have recently issued warnings about clones. Last week, the British FCA issued a warning concerning a company impersonating the social trading giant, eToro using the broker's license number. A day later, CySEC drew attention to a clone of the Polish brokerage house, TMS, which is currently part of the OANDA Group.
