The publicly-listed and regulated broker XTB has been illegally impersonated by an unauthorized firm in an attempt to scam investors, as warned by the UK Financial Conduct Authority (FCA). This scam illegally uses the details of the legitimate XTB platform in its effort to deceive retail traders.
Investors should be aware that this is not the real XTB platform and should exercise caution when evaluating investment opportunities online that claim affiliation.
FCA Warns against XTB Clone Targeting UK Investors
The clone firm "XTB Trading World" has been contacting UK residents claiming to be associated with XTB Limited, an FCA-authorized company. However, the FCA confirmed this clone firm has no connection to the real XTB.
The fraudsters are using the firm name to falsely present themselves as XTB. Attempts to contact retail investors are made through the phone number +447424912789 and the email address tradewithxtb@outlook.com. The FCA emphasizes the importance of exercising extreme caution and avoiding any interaction with these scammers.
According to the FCA warning, the XTB clone promotes financial services and products to UK investors without authorization. This puts investors at risk of losing money without recourse.
Clones Are Everywhere
This is not the first warning from the FCA against the XTB clone . The last time the regulator warned about people impersonating employees of the publicly listed company was in March 2022. This year, the regulator from Italy blocked access to the XTB Empire website, which is also a clone.
Just yesterday (Wednesday), Finance Magnates informed about clones of the popular retail trading brand Hargreaves Lansdown and retail banking giant Westpac. It shows that the practice of creating fake firms, mirroring legitimate ones is, unfortunately, getting more common.
In November, the FCA issued alerts regarding imposters of renowned platforms like the social trading network eToro and those posing as publicly traded IG Group members. Moreover, during that month, con artists misused the names and trademarks of Santander and Saxo Bank.
How To Protect Yourself
Common tactics of clone firms include cold-calling investors with investment offers, promoting fake products not offered by the real firm, and asking investors to transfer funds in unsafe ways. Victims often lose large sums of money to these scams, with an average reported loss of £47,000.
Clone firms take advantage of the trust placed in established financial brands and exploit investors' lack of awareness of fraud tactics. The FCA advises investors to only deal with FCA-authorized firms, which can be checked on the Financial Services Register. Dealing with unauthorized firms means forgoing certain investor protections.
Investors should also be wary of unsolicited contact about investment opportunities. Carefully check any firm's credentials before sending them money or sharing personal information. Everyone can report scams to the FCA by calling the authority or using their contact form.
