Clone Firm

A clone firm fraud involves criminals creating a fictitious company that impersonates a genuine FCA-authorised or SEC-registered firm. They copy the real firm's name, registration number, address, and website design, creating a convincing facade. Victims who check regulatory registers find the real firm's details, assume they are dealing with it, and invest money that goes straight to the fraudster.

The fraudster typically contacts victims cold — by phone, email, or social media — offering investments in shares, bonds, or crypto. They direct victims to check the regulator's register (showing the genuine firm's details) as 'proof' of legitimacy. Because the registered firm is genuine, it passes basic checks; the fraud only becomes apparent when the victim tries to contact the real firm or seeks to withdraw funds.

The FCA maintains a Warning List of known clone firms. When investing, consumers must independently source the contact details for any regulated firm from the official regulator register — not from any details provided by the person contacting them. A subtle difference in domain, phone number, or email address (e.g., @gmail.com instead of a corporate domain) is a key red flag.