The New Zealand’s market watchdog has uncovered an extensive network of fraudulent online trading platforms operating a sophisticated investment scam targeting global investors. The Financial Markets Authority (FMA) has identified 96 suspicious websites masquerading as legitimate investment platforms, including unauthorized clones of prominent brokers such as Saxo Bank, IG Markets, and ATFX.

FMA’s Investigation Reveals Massive Online Trading Scam Network

The fraudulent operation employs a calculated approach, presenting investors with seemingly legitimate trading platforms that display artificial profits to create an illusion of successful investments. However, when clients attempt to withdraw their funds, they encounter systematic obstacles designed to extract additional payments under the guise of taxes or processing fees.

These platforms are specifically designed to deceive investors through a sophisticated facade of legitimacy. The investigation has revealed that the network operates through multiple domains, frequently changing names and web addresses to evade detection. Many of these platforms share similar operational patterns, using professional-looking interfaces and customer support systems to maintain their deceptive facade.

Among the identified platforms are clones of major financial institutions like ATFX and IG markets, operating under slightly modified domain names such as "atfxgoldvip.cc" and "igmarketsfx.com." These sites often employ similar email patterns and support structures, suggesting a coordinated operation behind the numerous facades.

The FMA have emphasized that legitimate withdrawal requests are consistently denied, with scammers instead demanding additional payments for fabricated fees or taxes. Even after victims comply with these demands, no funds are released, resulting in complete losses for affected investors.

The FMA has issued a comprehensive list of suspected fraudulent platforms, warning investors to exercise extreme caution when approaching online investment opportunities. The regulatory body continues to monitor the situation actively, noting that the list of suspicious platforms may expand as new variants emerge.

Beware of Clones

Many entities on the latest FMA warning list use the tactic of "cloning" legitimate businesses, impersonating them to mislead end users. Regulators worldwide have issued warnings about such practices. A few months ago, the Spanish CNMV published a similar, even longer list, where fraudsters had cloned well-known brokerage brands such as AvaTrade and LCG.

The FMA itself recently warned about Mic-Market, a company that falsely claimed to hold investment service licenses issued in Cyprus and South Africa. However, these authorizations actually belonged to another firm, Colmex.

In May 2024, the New Zealand regulator also highlighted a growing number of fraudulent financial product advertisements featuring celebrities and public figures. Leveraging AI, these scams promoted trading in forex and cryptocurrencies.