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Fraudsters send consumers emails with links to websites of real companies to build trust.
![[IMG]](https://www.securitylab.ru/upload/iblock/5fc/5fcedeeeb6a91032df23398751310910.jpg)
UK consumers lost £ 78m ($ 109m) to so-called "clone firms" last year, as financial troubles associated with the pandemic have convinced many to make rash investments. According to the Financial Services Authority (FCA) in the UK, consumers lose an average of £ 45,000 to scammers posing as legitimate investment companies.
Clone Firms are fake organizations created by fraudsters who use the name, address, and Firm Reference Number (FRN) of legitimate FCA regulated companies.
Fraudsters send consumers e-mails with links to websites of real companies in order to increase the credibility of their actions.
However, FCA emphasizes that even the most experienced investor can be at risk. Three quarters (75%) of investors have assured FCA that they can detect fraud, but even more (77%) do not know or are not sure what a "clone investment firm" is. The regulator has urged all potential investors to check the firm's information on the FCA register and use the phone number listed there to cross-check any information.
While 38% of investors said they would verify the unique FRN identifier, verification alone is not enough. Fraudsters often copy FRN numbers and encourage victims to check the FCA register to prove their legitimacy.
UK consumers lost £ 78m ($ 109m) to so-called "clone firms" last year, as financial troubles associated with the pandemic have convinced many to make rash investments. According to the Financial Services Authority (FCA) in the UK, consumers lose an average of £ 45,000 to scammers posing as legitimate investment companies.
Clone Firms are fake organizations created by fraudsters who use the name, address, and Firm Reference Number (FRN) of legitimate FCA regulated companies.
Fraudsters send consumers e-mails with links to websites of real companies in order to increase the credibility of their actions.
However, FCA emphasizes that even the most experienced investor can be at risk. Three quarters (75%) of investors have assured FCA that they can detect fraud, but even more (77%) do not know or are not sure what a "clone investment firm" is. The regulator has urged all potential investors to check the firm's information on the FCA register and use the phone number listed there to cross-check any information.
While 38% of investors said they would verify the unique FRN identifier, verification alone is not enough. Fraudsters often copy FRN numbers and encourage victims to check the FCA register to prove their legitimacy.