The FCA has highlighted the dangers of investment clone scams and has issued 29 new FCA warnings to unauthorised and clone firms in the last 7 days. Investment clone scams are particularly dangerous as they almost perfectly replicate real websites and brands. Even the Financial Conduct Authority has had it’s own FCA register cloned by scammers, as we reported back in June 2020.
For more information on investment scams, we recently recorded a podcast with Hargreaves Lansdown on how to spot fake investing websites and clones based on our research into social media fraudsters.
The FCA has recently become aggressive in dealing with unregulated schemes and potential scams. It recently fined Influencers for promoting scams to their networks through social media.
In 2020 one of our readers has avoided being scammed by a fake comparison site by doing his research online.
How does an investment clone scam work?
A typical clone scam works like this. Scammers will:
- set up a fake comparison website offering high returns
- advertise these returns on social media or search engines
- request your name, phone and email address to get more information on the investment
- contact you via email and call you using high-pressure sales techniques pretending to be from the legitimate investment firm. In a recent example case they provided a “product number”. This number was actually the FCA authorisation number of the real Aberdeen Standard. Presumably so that if you Google the offering it will show up some real information
- The scammers will then set up a fake bank accounts using the KYC (ID) documents you supplied so that when your money arrives, it can be sent abroad quickl,y making it difficult to retrieve.
A list of the 29 most recent warnings issued are below and can also be found on the FCA’s warning list page:
If you believe something is an investment scam, you can report it to the FCA here.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
