The UK’s Financial Conduct Authority (FCA) has issued a warning about a fraudulent company posing as APM Capital Markets Limited. Investors are urged to verify the legitimacy of any financial firm by using the FCA’s Financial Services Register.
The clone firm is operating through the website www.buxtrmarkets.com, which closely mimics the legitimate site www.buxmarkets.com. Clone firms like these impersonate authorized financial companies to deceive investors, using fake websites, emails, and contact details that resemble those of genuine FCA regulated firms.
Why This Matters
Clone firms are designed to mislead investors into believing they are working with a legitimate financial institution, potentially leading to significant financial losses. These fraudsters typically use similar names, logos, and contact details, making it hard for potential investors to recognize the scam.
In this instance, the scammers are pretending to be APM Capital Markets Limited, a genuine firm in the financial sector. The FCA cautions that investors who fall victim to a clone firm are not protected by the UK’s Financial Services Compensation Scheme (FSCS), which provides safeguards if a legitimate financial firm goes out of business.
Additionally, since clone firms are unregulated, victims are not entitled to assistance from the Financial Ombudsman Service if they encounter problems. This means that anyone caught in the scam risks losing their entire investment with little to no chance of recovering the lost funds.
How to Spot a Clone Firm
Fraudulent clone firms often create websites with URLs that closely resemble those of real companies. In this case, www.buxtrmarkets.com is being used to imitate the authentic www.buxmarkets.com. Scammers may also provide fake phone numbers, emails, and addresses that are designed to look like the legitimate company’s details.
The FCA strongly advises investors to use its Financial Services Register to confirm the authenticity of any firm they are dealing with, especially when working with a company for the first time. Always ensure that the firm is authorized by the FCA before proceeding with any financial transactions.
Background on BUX Financial Services
BUX Financial Services, which offers CFDs and financial spread betting services in the UK, was acquired by Asseta Holding, the parent company of UAE-based APM Capital, in July. This acquisition followed ABN AMRO’s purchase of BUX’s Netherlands operations, which are now operating as a neo broker.
