Clone firm fraud is at an all-time high — here is how scammers replicate legitimate FCA-authorised firm branding and what investors can do to protect themselves.
What Is Clone Firm Fraud?
Clone firm fraud involves criminals creating fake companies that impersonate legitimate, FCA-authorised firms. They use the real firm’s name, FCA registration number, and branding to appear credible. The FCA Register shows the real firm as authorised — but the contact details, website, and bank accounts belong to the fraudsters.
How Clones Are Built
A sophisticated clone operation typically involves: registering a domain name similar to the real firm’s (e.g., adding a hyphen or changing the TLD), creating a website that closely mirrors the real firm’s design, obtaining a virtual phone number with a UK area code, and setting up corporate bank accounts in the UK or EU.
The FCA Register Trap
Many investors check the FCA Register and find the real firm listed as authorised — then assume they are dealing with that firm. The critical check is to verify the contact details on the FCA Register match the contact details you have been given. Clone firms rely on investors not making this comparison.
Scale of the Problem
The FCA received 8,500 reports of clone firm fraud in 2025 — a 34% increase on 2024. Estimated losses exceed £200 million annually. The FCA’s Warning List currently contains over 1,200 clone firm entries.
How to Protect Yourself
Always contact firms using the details on the FCA Register — never using contact details provided by the person who approached you. If you receive an unsolicited investment offer, treat it as suspicious regardless of how professional it appears.