A fraudulent company posing as a licensed brokerage firm has triggered a scam alert from the UK’s financial watchdog. The Financial Conduct Authority (FCA) has warned consumers not to engage with “XTB Online,” a firm it says is offering financial services without authorization while using the branding of legitimate broker XTB.

The FCA said “XTB Online” is falsely claiming to operate out of Canary Wharf, using the address One Canada Square, and has listed a website and support email that may appear genuine at first glance.

However, according to the watchdog, the firm is not authorized to offer financial services in the UK and is not affiliated with the real XTB entity regulated under FCA rules.

Bogus Website and Fake Contact Details

According to the regulator, clone firms often use real company information, including postal addresses and branding elements, to mislead potential investors. In this case, “XTB Online” uses a near-identical name and a London address to convince targets that it is a legitimate operation.

The firm’s website, xtbonline.com, is not affiliated with the authorized broker XTB, which operates under a separate FCA registration. The FCA noted that victims of such scams typically lose access to both their funds and any form of legal recourse.

“If you deal with this firm, you won’t have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme,” the FCA said in its warning.

No Consumer Protection If Things Go Wrong

The watchdog made it clear that anyone doing business with XTB Online will not be covered by key financial protections in the UK. This means that if the firm collapses or disappears with investor funds, there is little chance of getting money back.

The FCA urged consumers to always check its Firm Checker before engaging with any company offering investment, trading, or financial services.

The FCA warned the public to be cautious of unexpected contact from firms claiming to be regulated. “Always verify a firm’s contact details against the information listed on our register,” it said.

Source: Finance Magnates