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 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 they have a complaint. You risk losing your entire investment, with little chance of recovering your funds if the scam is uncovered, the financial watchdog said.

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.

BUX Financial Services was sold to Asseta Holding, the parent company of UAE-based investment firm APM Capital, in July. The acquisition came after ABN AMRO finalized the acquisition of BUX’s Netherlands operations, which is operating as a neo-broker. The UK unit of BUX provides CFDs and financial spread betting services.