The FCA warns that many bogus trading and brokerage firms claim to be licensed to conduct business in the United Kingdom when in fact they are not. Others may usurp a real firm registration number (FRN), corporate address and names of employees of a legitimate company that is indeed are FCA authorized. These are known as “clone firms.”
Following a series of complaints, South Africa’s Financial Services Board (FSB) has found that a local forex trading platform has been operating even though it never conducted any trading. Approximately 3,000 people had paid 52 million rand into what they believed was a legitimate brokerage but, in reality, was a Ponzi scheme.
The Monetary Authority of Singapore (MAS) reports that more than 40 Singapore residents have reported losses in excess of $1.7 million after being lured to take part in unregulated binary options trading. One of them lost $693,000 of that total. The smallest sum lost was $250.