Is a high-yield savings account offered by email from a bank I don't recognise legitimate?
Unsolicited emails advertising above-market savings rates from unfamiliar banks deserve verification before any deposit. Some are fraudulent clone firms.
Last reviewed: 1 August 2026
Explanation
Clone firm fraud involves criminals registering entities with names similar to real banks and advertising above-market interest rates to attract deposits. The firm may even create websites that reference real regulatory registrations to appear legitimate, while actually not being authorised. In the UK, the FCA maintains a financial services register — any firm collecting deposits must be listed there. In the US, the FDIC insures deposits at member banks. Before depositing with any unfamiliar savings provider, verify their exact registration on the regulator's official register and confirm the email domain matches the firm's verified contact details. Deposits at unregulated firms may not be covered by compensation schemes.
Clone operations put real effort into surviving your first round of checks. They quote the genuine firm's registration number, copy its address, and sometimes link to the real regulator entry — counting on you noticing that the firm exists without noticing that the contact details you are using belong to someone else. That is why verification has to run in one direction only: find the firm on the register first, then use the phone number and website listed there, rather than confirming details the email gave you.
Rate context helps too. Deposit rates across regulated providers cluster within a narrow band because they are all funded the same way; an outlier well above that band is not a hidden bargain, it is the cost of attracting deposits from people who compare rates but not registrations. Before moving savings anywhere unfamiliar, check the firm on the official register, confirm deposit protection applies to the specific account type, and make the first contact yourself through the registered details. An unsolicited email is never the right doorway into a savings product.
Common red flags
- Interest rate significantly higher than other market rates
- You cannot find the firm on the official financial regulator's register
- Contacted by unsolicited email rather than through a comparison site you initiated
- Firm name is similar to a well-known bank but slightly different
What to do now
- Search the firm's exact name on the official financial services register
- Verify the firm's registered address, phone number, and email domain match the register
- Do not deposit until verification is complete
- Report suspected clone firms to your national financial regulator
Frequently asked questions
What is a clone firm?
A clone firm uses a name and branding similar to a real authorised firm to deceive consumers. They are not the real firm and deposits are not covered by compensation schemes.
The email quoted a genuine regulator registration number — doesn't that prove it's real?
No. Clone firms quote the real firm's registration while substituting their own bank details and contacts. Always look the firm up on the register yourself and use only the contact details listed there.
I already transferred savings to one of these firms — what now?
Call your bank immediately and ask them to attempt recovery of the transfer, then report the clone firm to your financial regulator. The sooner your bank acts, the better the chance of freezing funds before they move on.