By £2.4 million stolen from people across East Yorkshire and Northern Lincolnshire in ‘clone firm’ investment scams
The number of ‘clone firm’ investment scams reported increased by 29% as UK went into first lockdown.
‘Clone firms’ are set up by fraudsters using the name, address and ‘Firm Reference Number’ (FRN) of real companies authorised by the FCA.
The criminal gangs running these scams can engage with victims through a number of channels. Often they will take out adverts on social media platforms and search engines.
Victims will then click on these adverts and be taken to exact replicas of websites belonging to genuine investment firms.
The most sophisticated criminals will even clone the website domain name. Once victims have registered their interest, they’ll be contacted by the fraudsters, who often obtain the names of genuine employees of investment firms and create seemingly legitimate company email addresses, but with very subtle changes.
How to protect yourself
Superintendent Sanjay Andersen, from the City of London Police’s National Fraud Intelligence Bureau, said: “The coronavirus pandemic has caused many people to feel financial worry and uncertainty – something which criminals will feel no remorse about capitalising on. We have sadly seen an increase in the number of investment fraud reports in 2020, compared to the previous year, with a spike in reports in the summer, after the first national lockdown was lifted.”
“This new trend of ‘clone firms’ is particularly worrying as it makes it harder for people to spot a scam.
Anyone considering an investment opportunity should double-check all the details of a firm, not just the FRN, on the FCA register. This includes the telephone number and it is important you only use the number on the FCA Register to make contact with the firm.
Remember:
- Reject unsolicited investment offers whether made online, on social media or over the phone. Be wary even if you initiated contact.
- Always check the FCA Register to make sure you’re dealing with an authorised firm and check the FCA Warning List of firms to avoid.
- Only use the telephone number and email address on the FCA Register, not the contact details the firm gives you and look out for subtle differences.
- Consider seeking impartial advice before investing.
- Investors can test if they can spot an investment scam from a smart investment by taking the Scam or Smart quiz, visit www.fca.org.uk/scamsmart to find out more.
- If you think you’ve fallen victim to an investment fraud, report it to Action Fraud as soon as possible online at www.actionfraud.police.uk or by calling 0300 123 2040.
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