What a clone firm is
A clone firm uses the name, registration number and sometimes the address of a genuine, authorised business. The website and paperwork look convincing because they are copied from the real thing. The difference is the contact details: the phone numbers, emails and bank accounts belong to the scammers.
How to check
- Look the firm up yourself on the official register of authorised firms in your country.
- Use only the phone number and website listed on the register, not the ones you were given.
- Call the firm through those official details and ask whether the person who contacted you works there.
- Check whether the register shows a warning that the firm has been cloned.
Red flags
- You were contacted out of the blue, or after leaving your details on a comparison site.
- You are asked to pay into a personal account or an account in a different name.
- The returns are higher and steadier than anything else on the market.
- There is pressure to decide quickly before an offer "closes".