UK Financial Conduct Authority Warns Investors Against “Clone Firm” Fair Oaks Crypto

News | August 8, 2018 By:

The UK Financial Conduct Authority (FCA) has issued a warning against a so-called “clone” company targeting UK investors. Clone companies claim to represent authorized firms, or even try to change firms’ contact details on the regulator’s register, to appear genuine.

In the statement, the FCA warned British investors not to take out any crypto-related services with Fair Oaks Crypto after the agency found out that the firm has been targeting people in the UK, claiming to be an authorized company. The FCA said that Fair Oaks Crypto is impersonating FCA-authorized firm Fair Oaks Capital Limited as part of their tactics to scam people in the UK.

“Almost all firms and individuals carrying out financial services activities in the UK have to be authorised or registered by us,” the FCA said. “Fair Oaks Crypto is not authorized or registered by us but has been targeting people in the UK. This is what we call a ‘clone firm,’ and fraudsters usually use this tactic when contacting people out of the blue, so 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 authorized firm or other details.”

Fair Oaks Capital Limited, an independent asset management and advisory firm, has published a warning on its website to alert its customers to the clone firm, which offers trading with Forex CFDs on bitcoin, Litecoin, indices, precious metals and energy.

“It has come to our attention that an organization called Fair-OaksCrypto, which appears to be operating from France, is using the Fair Oaks name and its prior address (67-68 Jermyn Street, London SW1Y 6NY, London) on its website www.fair-oakscrypto.com.”

The FCA advised investors to only deal with financial firms that are authorized by the agency, and check the Financial Services Register to ensure they are genuine companies. The FCA said that investors should also be aware that if they give money to an unauthorized firm, they will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme if things go wrong.