The UK Financial Conduct Authority has put out a press release that warns about a new ‘clone firm’ investment scam impersonating LiteForex, which rebranded last year as LiteFinance.
In a statement on its website, the regulator said the unauthorised clone firm is going under the name of Lite Forex Pro, operating through the domain www.liteforexpros.com.
The copycat broker has chosen to operate under a name similar enough to LiteForex to convince potential clients that it was the authorized online trading firm that had contacted them.
This also provides an easy hunting ground for clone scams who target victims via paid-for adverts. As such, the City watchdog undertakes proactive monitoring, almost on a daily basis, to identify potential scams and provides search engines and social media networks with details of the alerts it issued. It also works closely with domain registrars to make it more difficult for cloned websites to stay online, and remove them as quickly as possible.
The warning is another step in the FCA’s tireless efforts to crack down on unregulated firms posing as legitimate approved businesses with full force. The regulator has previously issued warnings against similar companies, urging the public to beware of firms working outside the law and without the proper necessary approvals and licenses.
The City watchdog urges people to be extra vigilant to the threat of investment scammers after victims lost over £78 million in 2021 – £45,000 each on average. As such, the FCA tells investors to check its register before doing business with any investment platform.
Founded in 2005, LiteForex is domiciled in Cyprus, where its Liteforex (Europe) Ltd brand is regulated by CySEC. LiteForex provides services to clients from the European Economic Area.
The group of companies also includes LiteFinance Global LLC (formerly LiteForex), registered in St. Vincent & the Grenadines and subject to a more flexible, looser regulatory regime. LiteFinance Global LLC is reputed as an experienced and reliable broker service provider, operating since 2005.
LiteFinance had rebranded to its new name back in November 2021. At the time, the broker said the move is the first step in a broader rebranding of their group of companies. At the first stage, they have changed the company’s logo, trademark, and organizational structure.
The new corporate identity reflects the company’s greater focus on a multi-asset offering rather than being a forex-only broker and also completes its ongoing transformation to having a diverse and quite random set of assets.
