Regulators Remain Vigilant, BaFin and FCA Flag Suspected Scams

Two potential threats have been detected by financial regulators this Tuesday, one from Germany and one from the United Kingdom, as scams within the foreign exchange (forex) industry continue to be a threat to consumers.
Today, the , more commonly referred to as BaFin, has published a warning against Sky Hub Limited which operates the trading platform

Through the trading platform, which claims to offer contracts-for-difference (CFD) and forex trading, Sky Hub Limited accepts foreign funds as deposits or other “unconditionally repayable funds of the public”.
However, according to the warning, the company is doing so without having the proper authorisation that is required from BaFin. Because of this, the German regulated prohibited the entity from conducting these types of transactions on the 18th of July.
Furthermore, the watchdog has ordered the immediate settlement of the unauthorised transactions. Although BaFin’s decision is immediately enforceable by law, it is not yet final, the statement said.
FCA flags Profit Trading Ltd as clone firm
Further to the west, Britain’s (FCA) has also flagged a suspicious entity, Profit Trading Ltd, which it claims is a clone of a legitimate FCA-authorised firm.
As the name suggests, clone firms are fraudulent entities which copy details of a legitimate firm, such as their name, website, address, registration details, etc. Some even go to the lengths of completely copying a firm – from their website, to brand, in order to trick investors into thinking that they are the actual legitimate firm.
The blacklisted entity claims to be a forex and investment trading platform, through its website According to the UK regulator, the entity is a clone firm of a legitimate company by the same name – Profit Trading Ltd.
“This UK registered company that fraudsters are claiming to work for has no association with the ‘clone firm’. Its correct details are: Firm Name: Profit Trading Ltd; Address: 21 Letterstone, London, Fulham, SW6 7BS,” the warning said.
“Be aware that the scammers may give out other false details or mix these with some correct details of the registered firm,” the FCA stated.

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