Clone Firm Fraud

Last updated: August 2026

Risk Level: High

The FCA received almost 5,000 reports of fake FCA-related scams in just the first half of 2025, with 480 victims tricked into sending money — and clone firms are a leading tactic behind those reports. Fraudsters impersonate genuine, regulator-authorised firms to steal investor funds, and the tactic isn’t unique to the UK: SEC, ASIC, and other regulators issue similar warnings.

What It Is

Clone firm fraud involves criminals creating fake companies that impersonate legitimate, regulator-authorised firms. They use the real firm’s name, registration number, and branding to appear credible, then steal investor funds. It’s one of the hardest fraud types for an investor to spot, precisely because the firm name and licence number they’re shown are genuine — just borrowed.

How It Works

  1. Fraudsters identify a legitimate, well-known, regulator-authorised firm.
  2. They create a convincing clone — a similar website, the real firm’s name, and a copied registration number.
  3. Cold calls or emails target investors, often referencing the real firm’s reputation.
  4. Investors send funds believing they’re dealing with the legitimate firm.
  5. Funds are stolen. The clone disappears.

Warning Signs

  • Unsolicited contact offering investment opportunities
  • A website URL slightly different from the real firm’s official site
  • Contact details (phone, email) that don’t match the firm’s entry on its regulator’s official register
  • Pressure to invest quickly before a “deadline”
  • Requests to move communication to WhatsApp, personal email, or messaging apps rather than official firm channels
  • Payment requested via unusual methods (crypto, gift cards, personal bank accounts) rather than the firm’s normal channels

What To Do

  1. Always verify contact details directly on the regulator’s official register — FCA, SEC, ASIC, or equivalent — never from links or numbers provided by the caller.
  2. Call the firm using the number listed on the register, not the number you were given.
  3. Report to your national fraud authority and financial regulator immediately — Action Fraud and the FCA (UK), the SEC or FTC (US), or ASIC (Australia).
  4. Consult a lawyer if you’ve already sent funds — find a fraud lawyer here.
  5. Submit a tip to InvestorWatchdog if you’ve encountered a clone of a specific firm — this helps warn other investors and may already be under investigation.

Frequently Asked Questions

How can I tell a clone firm from the real company? The name and registration number will match — that’s the entire trick. What won’t match is the contact information: check the firm’s phone number, email, and website directly against its entry on the official regulator register (FCA, SEC, ASIC), rather than trusting any number or link the caller gives you.

What’s the difference between a clone firm and an unlicensed/fake broker? A clone firm impersonates a real, currently-authorised company using its genuine name and licence number. An unlicensed or fake broker invents an identity — often with no real license at all, or a fabricated one — rather than borrowing someone else’s. See our Fake Broker / Unlicensed Platform guide for that variant.

Why would a real firm’s reputation be used against me like this? Because it works. Borrowing a well-known, trusted firm’s name and licence number does most of the persuasion for the fraudster — you’re not being asked to trust an unknown company, you’re being shown a name you may already recognise. That’s exactly why checking the register directly, rather than trusting what you’re shown, is the one step that reliably catches this.

Can I get my money back if I’ve fallen for a clone firm scam? Recovery is difficult, especially once funds have left your account. Report immediately to your bank and financial regulator — quick action gives banks the best chance of freezing or reversing a transfer. See our Compensation Schemes guide for what protection may apply.

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