The UK’s Financial Conduct Authority (FCA) has exposed a sophisticated impersonation scam involving a clone company posing as the well-known XTB forex broker. The fraudulent entity, operating under the name “XTB Trading World,” has been providing false information to potential investors, resulting in substantial financial losses.

The FCA warns retail traders about the growing prevalence of illegal imitations within the forex trading industry. The average loss incurred by victims of this scam is estimated at £47,000, prompting the regulatory authority to issue a strong advisory for investors to exercise caution and choose companies licensed by legal financial services authorities.

The clone company, “XTB Trading World,” falsely claims affiliation with the FCA-licensed platform, using this association to reassure traders of its legitimacy. However, the FCA has categorically stated that the clone company has no connection whatsoever to the authentic XTB forex broker.

FCA Unmasks XTB Forex Impersonation Scam, Advises Caution to Traders

This fraudulent activity involves the cloning of the award-winning XTB platform, which holds operational licensing from the FCA. The perpetrators use deceptive tactics, including providing fake contact details such as the telephone number +447424912789 and the email address tradewithxtb@outlook.com. These misleading details have resulted in UK investors falling victim to financial losses due to the lack of proper legal entity identification.

The FCA emphasizes the importance of caution, urging investors to avoid any interactions with these fraudsters. The clone company promotes financial services and products without proper authorization, offering no substantial information to establish reliability or legitimacy.

This incident is not the first time the FCA has dealt with clones targeting the stock exchange-listed XTB broker. In a related case last year, Italian regulators took action to block access to Empire’s XTB clone site. In March 2022, regulators reported cases of individuals posing as employees of public companies.

Lastly, investors have to stay vigilant, conduct thorough due diligence, and only engage with companies that hold proper licensing from recognized financial authorities to safeguard their investments and financial well-being.

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