SquaredFinancial said that it has introduced an improved fraud prevention framework to increase transparency and combat deceptive practices.
According to the company, it is constantly boosting its compliance and risk teams as well as bolstering processes and protocols to easily identify and address any fraudulent activities.
SquaredFinancial also said that an extensive approach to fraud prevention and management requires strong tools to conduct comprehensive risk assessments, discover potential vulnerabilities, and prioritise mitigation of risks.
Furthermore, the company said that most common types of fraud are identity theft, phishing, web skimming, social engineering, and botnet attacks that can be prevented with a robust IT infrastructure and focus on cybersecurity.
Last month, the company started an internal investigation following the deceitful actions of a specific partner.
By leveraging internal analytical tools, SquaredFinancial was able to rapidly identify irregularities and promptly took action to prevent further exploitation.
SquaredFinancial chief legal and compliance officer Craig Jenkins said: “The recent case of abusers was detected by our software used to identify suspicious patterns, revealing a network of connected trading activities.
“A thorough inspection uncovered dozens of ‘clients’ engaging in coordinated trades from the same location, even the same computer, to abuse the favourable conditions we provide, using fake documents to bypass our checks. Prompt actions were taken; accounts were suspended, and partners notified.”
Established in 2005, SquaredFinancial addresses the financial requirements of investors of different backgrounds.
The company banks on innovative technology, data, and innovation to provide a range of financial instruments for traders seeking a trustworthy, secure and regulated gateway to trade global markets.
