You can’t be complacent when it comes to protecting your money from financial crimes. Fraudsters are always working out new ways to try and outwit us. One of the latest trends being reported from the Financial Conduct Authority (FCA) is in clone firm investment scams.
Clone firm investment scammers pocketed over £36 million from consumers in the first half of 2021, with victims losing £47,000 on average.
What are clone firm investment scams?
Clone firm investment scams are financial operations which involve fraudsters using literature and websites that mirror the details of authorised companies. This can include large investment platforms like Hargreaves Lansdown as well as other pension providers, financial advisers, and wealth managers.
How they work
Fraudsters are clever. For many it’s a full-time job so they have the time and expertise to try and trick you. They might sound convincing, authoritative, or professional and have many ways to gain your trust and ultimately your money.
They use high-pressure tactics to get you to buy investments. These ‘investments’ are worthless and often aren’t even offered by the company they’re pretending to be.
They’ll try to convince you they work for a genuine company – when contacting you they often use the names of legitimate employees of the company they’re pretending to be.
Victims are often targeted through fake adverts on social media or search engines. The ads link to a replica of the genuine company’s website. They can even clone the real website’s web address.
5 tips to help spot clone firm scams
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Receiving a seemingly genuine call to promote an ‘investment’
Scammers might call you promoting an investment or offer you money in exchange for your shares. We’d never do this. Often the ‘investment’ or product isn’t even offered by the genuine company.
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Offering you to invest in a product directly through social media
Scams like this have become more common on social media and search engines recently. We’ll never approach you in this way.
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Asking you to send application forms by unsecure email
Scammers often ask you to send applications by unsecure email. Where possible, we’ll ask you to complete an application on our website, over the phone or by post. If you need to send an application by email, protect the attachment with a password and let us know what the password is separately.
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Trying to discuss your personal information by unsecure email
If we need to contact you about your HL account, we’ll do this by secure message, which is sent to your online account.
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Insisting you send money via bank transfer
Scammers often ask for money to be sent electronically to a bank account, sometimes overseas, or a currency exchange provider. The quickest and safest way to send us money is usually through our website, app, or by calling us. If you need to send us a bank transfer, you can contact us securely to verify the correct details before you make a payment.
Remember, if it seems too good to be true, it probably is.
Protecting yourself from scams
Check the company contacting you is FCA-authorised
The FCA authorises almost all financial services companies in the UK. If the company contacting you isn’t authorised, it could be a scam. You can check the Financial Services Register to see if a company or individual is authorised. If you’re contacted by a company you’re not familiar with, you should always check the register before you do anything.
Check the company contacting you is genuine
To make sure the company contacting you is genuine, you should call their contact number on the FCA Register. If they phone you, it’s usually best to end the call, check the register and then call the company back on the number found on the FCA website.
If you can’t find any contact details on the FCA Register or if the company claims the details are out of date, check by calling the FCA’s consumer helpline on 0800 111 6768.
If you’re dealing with an overseas company, you should check with the regulator in that country and also check the scam warnings from foreign regulators.
Remember, phone numbers displayed on incoming calls are easily spoofed by fraudsters to make it appear they’re calling from the expected location or company. If you don’t feel comfortable then you should stop, think and check before taking any action.
Check the FCA Warning List
Use the FCA Warning List to see if the company is known to be operating without the FCA’s permission.
Even if a company isn’t on the FCA Warning List, it might still be a scam – scammers will change the company name and details all the time.
Reject unexpected investment offers whether made online, on social media or over the phone. Be wary even if you made the first contact.
What to do if you think you’ve been scammed
Call your bank straight away – they’ll be able to help you with the next steps. You should also report it to Action Fraud online or by calling 0300 123 2040, and the FCA either online or by calling 0800 111 6768.
If you've started a pension transfer and now suspect a scam, call your pension provider straight away. They might be able to stop it.
Further guidance and support:
A leading source of up-to-date, straightforward information about online safety.
MET POLICE – PERSONAL FRAUD AND HOW TO PREVENT IT
What to look out for and how to stay safe.
Impartial advice to help everyone in the UK protect themselves against fraud.
Resources produced by Age UK about scams.
Help with the emotional impact of fraud
Falling victim to fraud can have a huge emotional impact as well as being financially crippling. Victims can often feel embarrassed and don’t want to tell people what’s happened, even though they’re not to blame.
If you need to talk to someone about how you’re feeling, you can contact Victim Support either online or via their support line on 0808 168 9111. You can also contact The Samaritans at any time of the day or night on 116 123.
If a scam has left you struggling financially, you can contact Citizens Advice. You can speak to an adviser to help you find a way forwards, through their Adviceline. They’re available 9am to 5pm Monday to Friday. If you live in England, call 0800 144 8848. If you live in Wales, call 0800 702 2020. If you live in Scotland call 0800 028 1456.
How secure are your investments with HL?
The security of your investments and pensions is our top priority. And we’re dedicated to keeping your account as safe and secure as possible.
Our Security Centre keeps you updated with the potential threats that might affect you and your account. We explain some of the measures we take to help keep your details safe and how to protect yourself.
If you’ve noticed any suspicious activity on your HL account or think your account might’ve been compromised, contact our Online Support team on 0117 980 9984 as soon as possible.