How plausible crooks cause double trouble
In a cloning scam, criminals use details of registered investment firms to fool victims into transferring money into accounts unconnected to the legitimate firm.
The fraudsters will usually promise a higher than usual return, including investments in high-yield bonds, gold, property, carbon credits, cryptocurrencies, land banks and wine.
The Financial Conduct Authority (FCA) said: “A new tactic has seen fraudsters using the name, firm registration number and address of firms and individuals authorised by us to suggest they are genuine. This is what we call a clone firm.
“We strongly advise people to only deal with financial services firms which are authorised by us, and check our register to ensure they are.
“To verify an identity, ask for their firm registration number and contact details, but always call them back on the switchboard number given on our register.
Rob Pritchard, founder of online security firm The Cyber Security Expert, said it was too easy for criminals to get away with this type of fraud.
“Unfortunately it’s extremely easy to clone websites and to give the impression of being based in a specific location when in fact it’s all fake,” he said. “It is very distressing for victims, especially as there is little recourse.
“Banks often will not refund the money and perpetrators are rarely convicted.”
Detective inspector Gordon Burns, of Police Scotland’s Financial Investigation Unit, said investment fraud can take many forms and those responsible are extremely skilled in gaining people’s trust.
“In some instances, the perpetrators will pretend to be from reputable firms registered with the FCA and offer investments with very attractive returns,” he said.
“When making any investment, it is vital to take time to consider what is being offered and if it too good to be true – then it likely is.
“If you think you have fallen victim to any scam and have transferred funds, please contact your bank immediately and report the matter to Police via 101.”