SC Malaysia Says the Number of Clone Firms Increased
The Securities Commission of Malaysia, which is the main regulatory body of the country, has recently published a statement regarding the ongoing misconduct in the local Forex trading market. The financial regulator said that there have been a lot of cases of clome companies in the country claiming that they are legit Forex brokers.
The statement of the regulatory body that was published a few years ago is aimed at making the local Forex trading market in Malaysia safer and more trustworthy than ever before. Recently, the Securities Commission of Malaysia has been very active in this regard and has done many things to safeguard local traders in the country.
As the regulatory agency of Malaysia reported, there is an increasing number of fraudulent Forex companies in the country that are trying to impersonate legitimate Forex brokers in the country to lie to investors and steal their money. The warning of the regulatory body came a few days ago with a special statement.
The regulatory agency has noted that the fraudulent companies are using the logos and names of official, legit Forex brokers to lie to people and mislead them. One way these companies are trying to trick investors is by offering them unrealistically high returns in a short span of time.
In addition to the names and logos of legit companies, fraudulent companies are also using emails and other credentials to promote their websites and attract as many investors as possible. The regulatory body has also noted that companies are using social media websites to attract as many people as possible.
As the official statement by the regulatory body said, the fraudulent companies are targeting local traders in the country. Other than that, they are also promoting their services among those who have no experience in trading as well.
The victims of these companies are asked to provide their personal information, including their names, personal numbers, bank information, and many others. After this, they are asked to make fund transfers to the companies, telling them that they would make huge profits from even the smallest deposits.
What can Malaysian traders do?
The Malaysian regulatory body calls on local traders to make sure to always stay cautious while participating in this market. The regulatory body says that people should double-check the information that they get online and only act after they are sure of what they are doing.
The regulatory body said that if a company is offering you very high returns with no risks, it most probably means that they are lying. It is a good idea to always check the information about certain companies with a regulatory body, and always pay attention to details about companies. The website of the Securities Commission Malaysia can be used to verify the regulatory status of the company that you are about to use, guaranteeing the safety of you and your hard-earned funds.
The Malaysian regulatory body has always been very active when it comes to fighting against fraudulent companies in the market. Recently, the Forex regulatory body was seen making very harsh moves against scammers. This is a very good sign since it shows that the regulatory agency of the country is doing its best to fight against fraudulent companies in the market.
However, this fight is not easy. Most of the time, the scam companies represent huge schemes, which are used by scammers to lie to as many people as possible. Also, once the fraudulent companies are getting flagged in the country, they are creating new websites and continue scamming people. In this very tight and hard-to-understand cycle, it is of utmost importance for investors to do their research before making any decision in the market.
As the regulatory body has noted, recently, in the country, that have been clones of some of the best Forex brokers around the world. This has lead to a lot of problems. The major reason for it is that local traders thought that they were trading with some of the best Forex brokers around the world, while, in reality, they were getting scammed.
Since the scammers are not authorized by local regulatory bodies, it is getting very hard for traders to get their funds back. This is why it is so important to make sure that you are trading with a regulated FX broker. If something goes wrong when you are trading with regulated and authorized companies, there are different types of safety measures that can be used to help you out, while, after trading with non-regulated companies, there is not so much that can be done.