Kenneth Mason A_ Garcia#41

View translation

Why do brokers clone regulatory licenses?

Cloned licenses are a common scam tactic where fraudulent brokers copy the registration details of legitimate firms to appear regulated. They may use the same license number, company name, or even fake websites that resemble the official broker. The goal is to trick traders into believing they are dealing with a licensed company. In reality, deposits go to the scam entity and withdrawals are blocked. To detect clones, traders should always cross-check details directly on the regulator’s website, verify addresses, and be cautious if contact information differs. Regulators such as the FCA and ASIC regularly issue warnings about clone firms, and checking official alerts is essential.