The Financial Commission, an external dispute resolution organization for retail traders, discussed today one of its newly-launched services, DisputeWatch, intended to allow broker members to spot and halt fraudulent transactions.
It allows brokers to create, upload, and monitor watchlists in the community. After that, it will begin to routinely scan for dispute matches and send notifications to brokers, warning of potential fraudsters as quickly as it identifies them.
DisputeWatch additionally lets the broker search its community registry to see if a client has any dispute records, and sends alerts regarding suspicious clients that have the potential to abuse a company. DisputeWatch achieves this by allowing companies to share dispute information to protect themselves from being attacked by the same fraudsters.
The service has already amassed a list of key FX brokers including Pepperstone, AvaTrade, USGFX, IC Markets, GKFX, One Financial Markets, ADS Securities, INFINOX, CAPXM and Amana Capital.
DisputeWatch at no charge for members
Finally, the Financial Commission explained that DisputeWatch at present is invite only. However, its members can receive access to the service at no charge as part of the recently launched 'Value-Added' service.
The self regulator added in a statement: ”Using the data provided by the community, DisputeWatch constantly monitors the watchlist for potential financial threats to the company and sends a notification whenever new disputes are found from people on your watchlist. It then automatically provides a visual match to help the broker see how much of the client’s information matches the information in the Community Registry. This information allows brokers to stop fraudulent transactions and disputes before they happen.”
The release of the new service comes after the Financial Commission increased the maximum amount assured under its compensation fund.
The decision will benefit clients of the FC’s contributing members, which include international online brokerages that participate in global foreign Exchange (Forex ), derivatives and cryptocurrency markets.
Specifically, the compensation fund increased its maximum coverage amount to 20,000 euros ($24,500) per client for A-Category Members. For the claims sought by clients of B-Category Members, the maximum amount recoverable was hiked to 5,000 euros ($6,119). This represents an increase of over 20 percent in US dollar terms.
