The British Financial Conduct Authority (FCA) has issued a warning against a clone of the popular retail trading brand eToro. eToro, a leader in social and copy trading, is regularly targeted by dishonest actors seeking to exploit its popularity for fraud. This time, the regulator is warning against the brands ExpoToro and TraToro, which display eToro’s license number on their website.
eToro is licensed by the FCA under reference number 583263. The exact same reference number can be found on the ExpoToro and TraToro website. Both these names are interchangeably used at expotoro.com. At the time of writing, the site is still accessible. However, most of its sections are not responsible.
“Scammers may give out other false details, including email addresses, telephone numbers, postal addresses and Firm Reference Numbers,” FCA warned in the official statement. “They may mix these details with the genuine details of authorized firms. They may also change their contact details over time.”
Although the scammer’s website in no way resembles the official eToro website, ExpoToro and TraToro can be considered deceptively similar to the original brand. Furthermore, under the ‘FCA License’ tab, the scammers’ website directly links to the regulator’s website and to eToro’s (UK) Ltd authorization.
A screenshot shows what the scammers’ site looks like. Source: ExpoToro.com
For comparison, a screenshot showing the original eToro website. Source: eToro.com
eToro Is Regularly Targeted by Clone Firms
This is not the first time the FCA has drawn attention to the activities of eToro clones. In 2019, the British regulator warned against FX Option, a company impersonating the local branch of the social trading platform. The FCA issued another warning in 2022 related to Etoro SB Limited.
Cloning refers to the fraudulent attempt by an entity or individual to use the data of an authorized firm to convince people that they are working in this company. In most jurisdictions, firms must be authorized to sell, promote, or advise on the sale of shares and other investments.
Some fraudsters simply claim to represent these authorized firms, changing contact details to appear authentic. Then, scammers give potential victims their own phone numbers, address, and website details.
A Long List of Clones of Popular Brands
Finance Magnates regularly warns against clones of popular trading companies. For example, in February, the Belgian FSMA issued a warning against a clone of the Webull FX/CFD trading platform and 20 other unlicensed firms. The same regulator had previously warned against a clone of CoinDesk, a popular cryptocurrency news portal.
In the same period, CySEC warned against a clone of the licensed broker IMS Markets, and the FCA drew attention to a company impersonating the broker Axi.
As it turns out, scammers impersonate not only regulated companies, but also regulators themselves. In October 2022, New Zealand’s FMA warned against people who claimed to be employees of the institution in phone calls and email conversations. Just a month ago, CySEC also issued a warning about impersonators.
“You should only deal with financial firms that are authorised by us. If a financial firm is authorised by us, it gives you greater protection if things go wrong,” the British FCA reminded, concluding its warning against eToro’s clone.
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