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UK Financial Watchdog Exposes Clone Crypto Firm

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The Financial Conduct Authority (FCA) of the UK has published a statement warning investors to stay away from a clone firm that calls itself Fair Oaks Crypto.

Almost all firms and individuals carrying out financial services activities in the UK have to be authorised or registered by us. This firm is not authorised or registered by us but has been targeting people in the UK, claiming to be an authorised firm.

Such a firm is called a ‘clone firm’. Fair Oaks Crypto is using the details of asset management and advisory firm Fair Oaks Capital Limited. The FCA further added, “you should be especially wary if you have been cold called. They may use the name of the genuine firm, the ‘firm reference number’ (FRN) we have given the authorised firm or other details.”

Ever since the crypto industry became big news, fraudsters have been using cryptocurrency in different scams. Last month, the Australian Competition and Consumer Commission (ACCC) reported that cryptocurrencies are the second most common investment scam vehicles in Australia.

The ACCC wrote, “The rise in popularity in cryptocurrency trading has not been missed by scammers who are latching onto this new trend to con people. These are similar to any other investment scam: the scammer will claim to have inside knowledge about price movements they will use to make you a fortune. If you invest, your money will quickly disappear.”

One of the most famous scams was the ‘giving away free crypto’ trend on Twitter. Scammers would create a Twitter account similar to a famous personality or a company, informing people that they were giving away free Bitcoin and Ethereum to people who verify their account and send them money first.

In order to control the situation, verified accounts pinned tweets warning users to ignore such scams. Ethereum co-founder Vitalik Buterin even changed his Twitter name to Vitalik ‘Non-giver of Ether’.

Image Credit: Deposit Photos

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