FCA
FCA issues warning over 'clone firm' investment scams
The FCA warns that scammers copy details of genuine firms and advises verifying a firm's telephone number and website address on the FCA Register.
A clone firm copies the name or details of a genuine company to appear legitimate. This page summarises what the UK Financial Conduct Authority (FCA) published about clone firm investment scams and what it advises. It does not name any firm or assess any broker.
How the FCA Describes the Tactic
In a press release dated 27 January 2021, the FCA states: "Scammers will often copy FRN numbers and encourage victims to check the FCA Register to prove their legitimacy." In other words, finding a firm's reference number on the register is not enough on its own.
What to Verify
The release explains: "The specific details of a firm, such as the telephone number and website address can be verified on the FCA Register." Compare each detail you were given with the register entry, and read our transparency checklist for the steps. For the general method, see how to check whether a broker is regulated.
What the FCA Advises
The FCA advises: "Reject unsolicited investment offers whether made online, on social media or over the phone." It also says: "Be wary even if you initiated contact." For cold-call tactics, see binary options broker cold call scam warnings, and for general red flags see binary options scam warning signs. If you suspect a scam, see how to report a binary options scam. In the UK, retail binary options sales are prohibited; see our guide to binary options in the United Kingdom.
Frequently Asked Questions
Why is a reference number not proof a firm is genuine?
The FCA states: "Scammers will often copy FRN numbers and encourage victims to check the FCA Register to prove their legitimacy."
What details should I compare with the register?
The FCA says details such as the telephone number and website address can be verified on the FCA Register.
Is it safer if I contacted the firm first?
The FCA warns: "Be wary even if you initiated contact."
Does this page address whether an individual could face liability?
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
Sources and Official References
- FCA: FCA issues warning over 'clone firm' investment scams (27 January 2021)
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.