What is a clone firm?
By Tom · Last reviewed · 1 minute read
A clone firm is a scam that pretends to be a genuine FCA-authorised firm. The fraudsters use the real firm's name, firm reference number (FRN) and sometimes its address, with their own phone numbers, emails and websites, so that anyone who checks the FCA Register finds a real firm and trusts them.
The FCA publishes clone firm warnings most working days, and explains the scam on its own clone firms page. The scam works because the usual advice, "check the firm is on the FCA Register", seems to pass: the firm being copied really is authorised.
How the scam works
The fraudsters pick a real firm, often a small one, and copy its name and FRN. They contact people by phone, email or social media, or set up a website and advertise, offering investments, bonds, savings accounts or pension transfers with good returns. When the victim checks the Register, the name and number match. The money goes to the fraudsters, and because the victim dealt with an unauthorised firm, they usually can't go to the Financial Ombudsman Service or the FSCS.
Variations include using a slightly changed firm name, giving the name of a real person who works at the firm, or using an overseas regulator's details.
How to spot one
The giveaway is the contact details. A clone firm can copy a name and number, but it has to use its own phone numbers, emails and websites so it can reach the victim. Contact the firm using only the details on the FCA Register. Suspected scams can be reported to the FCA. Be especially careful with cold calls, mobile numbers, free email addresses and requests to pay into an account in someone else's name.
If your firm is cloned
Tell your compliance support, warn your clients with the fraudsters' exact details, and put a notice on your website. My guide on what to do if your firm is cloned goes through it step by step. To see whether any FCA warning already names your firm, use the free FCA clone check.
Questions people ask
How do I spot a clone firm?
Look the firm up on the FCA Register and contact it using only the details shown there, not the ones in the email or call you received. If the phone number, email or website you were given doesn't match the Register, treat it as a scam.
Does the FCA publish a list of clone firms?
Yes. It publishes a warning for each clone firm it finds, with the details the fraudsters use and the genuine firm's name and FRN. They're on the FCA's warning list.
How do I know if my firm has been cloned?
Search the FCA's clone warnings for your FRN. My free FCA clone check does that, and FCA Updates subscribers get an email the day a new warning names their firm.