Clone firm scam — recovering money from a fake FCA investment firm.

A clone firm uses the name, registration number, and branding of a real, FCA-authorised investment firm to make itself look legitimate. You checked. The registration number was real. The firm appeared on the FCA Register. And the money is gone. The law is now firmly on your side.

How do I know if I was dealing with a clone firm?

Check the FCA Register (register.fca.org.uk) for the firm's name and registration number. If the contact details on the Register (phone number, email address, postal address, website URL) differ from those used by the firm you dealt with, you were dealing with a clone. Also check the FCA Warning List. Legitimate FCA-authorised firms never cold-call unsolicited investment opportunities and never pressure you to invest quickly.

Can I get my money back from a clone firm scam?

Yes, in most cases. If you made a bank transfer from a UK account, the PSR Mandatory Reimbursement Scheme (in force from 7 October 2024) requires your bank to reimburse you up to £85,000. Clone firm fraud is explicitly covered as investment APP fraud under the scheme. The credibility of the fraud — using a real FCA registration number — makes it very hard for the bank to argue gross negligence.

The firm used the FCA's logo and registration number. How was I supposed to know it was fake?

You were not supposed to know — that is what makes clone firm fraud so devastating. The FCA itself acknowledges that clone firms are among the most convincing frauds it encounters. Victims who checked the FCA Register often found the correct registration number and were deceived by the different contact details only visible on closer inspection. Checking the Register is evidence of reasonable care, not negligence.

Will the real firm I was impersonating help me?

The real firm has no legal liability for what the clone did. However, they should be informed — they have an interest in stopping the clone and may have information about other victims. Contact the real firm via the contact details on the FCA Register only, not via any details provided by the clone. The real firm may also be able to confirm in writing that you were not their customer, which is useful evidence for your bank claim.

Can I claim from the FSCS?

The Financial Services Compensation Scheme (FSCS) covers consumers when FCA-authorised firms fail. Clone firms are not FCA-authorised — they just pretend to be. The FSCS therefore does not cover clone firm losses directly. However, if a real FCA-authorised adviser directed you to the clone (for example, by being negligent in verifying the firm they recommended), that adviser's liability may be covered by the FSCS if they have since failed.

What if I invested through an ISA wrapper promoted by the clone?

A genuine Stocks and Shares ISA must be held by an FCA-authorised firm. If the ISA was fake — as is typical in clone firm fraud — there is no legitimate ISA, and HMRC's ISA protection rules do not apply. Your claim is against the bank that processed the payment to the clone, under the PSR scheme, and against any authorised adviser who recommended the investment.

Scam Refund · Scam Types

Clone firm scam — recovering money from a fake FCA investment firm.

What a clone firm is

A clone firm is a fraudulent entity that copies the identity of a genuine, FCA-authorised financial firm — using the real firm’s name, registered address, FCA registration number, and in many cases its logo, website design, and marketing materials. The clone operates under the genuine firm’s regulatory umbrella in everything except the account details: the money goes to the scammer, not to the legitimate business.

The FCA added 1,674 clone firm warnings to its warning list in 2023 alone. Action Fraud and the FCA consistently rank clone firm fraud among the most financially damaging APP fraud categories, with average individual losses often exceeding £45,000. The reason losses are so high is that victims have taken what appears to be every reasonable precaution — they checked the FCA Register — and still been defrauded.

How clone firms operate

The operation typically begins with a cold call, a LinkedIn approach, a social media advert, or a comparison website listing. The investment offered — often bonds, property funds, ISAs, or crypto products — promises returns that are above the market rate but not so high as to be obviously implausible: 7% to 12% per annum is a common range.

The scammer provides a name that matches or closely resembles a real FCA-authorised firm and an FCA registration number that is real. The contact details (phone number, email, and website) differ from those on the FCA Register — but a victim who only searches the firm name on the Register may not notice this distinction. Brochures and term sheets are professionally produced using the real firm’s design language.

An initial investment is confirmed by a contract document. Interest may even be “paid” for the first quarter — sourced from the victim’s own capital — to build confidence before a larger investment is solicited. When the victim attempts to withdraw, access problems appear: the portal goes offline, calls go unanswered, and eventually the contact ceases entirely.

How to spot a clone firm before investing

• The approach is unsolicited — a cold call, an email, or a social media approach from someone you have not contacted.
• The returns offered exceed what legitimate fixed-income products offer at the same risk level.
• The FCA registration number matches a real firm, but the contact details (phone, email, web URL) differ from the FCA Register entry — always call or email using the Register details, not those provided by the caller.
• You are pressured to invest quickly, told the offer closes soon, or asked not to discuss it with family or a financial adviser.
• The firm uses web addresses that are slight variations of the real firm’s domain.
• Certificates, bond documentation, or “trustee” letters use generic legal language rather than the specific language of regulated financial products.

What to do in the first 24 hours

• Stop all further payments.
• Do not make any additional investments regardless of what the scammer tells you.
• and report all payments to the clone firm as APP investment fraud. Ask for payment recall on any recent transfers.
• Report to Action Fraud
• at actionfraud.police.uk and obtain a crime reference number (CRN).
• at fca.org.uk/consumers/report-scam-us. The FCA can add the clone to its warning list and may take enforcement action.
• Screenshot all communications
• — emails, contract documents, brochures, account statements, and the website. Preserve everything.
• Contact the real firm
• via the contact details on the FCA Register to alert them that their identity is being cloned and to get confirmation that you were not their client.

Your legal refund route

Payments made by bank transfer from a UK account to a UK-domiciled account in a clone firm fraud are Authorised Push Payment (APP) fraud — specifically investment fraud — covered by the PSR Mandatory Reimbursement Scheme in force since 7 October 2024. Your sending bank must reimburse you up to

applies to non-vulnerable consumers.

The gross-negligence bar is particularly high in clone firm cases. The FCA itself acknowledges that clones are designed to defeat the standard checks a reasonable investor would carry out. Victims who verified the FCA registration number were doing everything they were told to do — the scam worked because the clone’s contact details were different from those on the Register, a distinction that requires a level of forensic attention that no ordinary investor is required to apply.

Banks have a Consumer Duty obligation (FCA Principle 12) to take active steps to protect customers from investment fraud, including checking payment destinations against known clone firm accounts. Payment Services Regulations 2017 regulation 77 requires the sending bank to identify and manage fraud risk. A bank that processed multiple large payments to a clone firm without querying them may have failed its own obligations.

If the payment was above £85,000

The PSR scheme caps reimbursement at £85,000. For losses above the cap, you may still pursue a claim through the Financial Ombudsman Service, which can award up to £455,000. You may also bring a civil claim for fraud or negligence against identifiable defendants under the Limitation Act 1980 (generally six years from the loss under section 5). For ISA or pension products specifically promoted by the clone, a complaint to the FSCS about the underlying promoting adviser may also be relevant.

• Report to bank, Action Fraud, and the FCA.
• Within 5 working days:
• Bank must reimburse or write with reasons (PSR scheme).
• Bank must issue a final response letter (FCA DISP rules).
• Within 6 months of final response:
• Escalate to the Financial Ombudsman Service.
• Within 13 months of last payment:
• Must bring PSR claim to the bank.
• Civil claim under Limitation Act 1980 s.5.

How banks refuse — and how to push back

“You should have verified the firm’s contact details on the FCA Register more carefully.”

This argument has been rejected by the FOS in multiple cases. The FCA Register shows names and registration numbers prominently; the difference in contact details requires a detailed comparison that no ordinary investor is required to perform. The FCA itself accepts that clone firms are designed to pass the checks most people carry out.

“You received glossy brochures and signed contracts — you had enough information to be on notice.”

Professional-quality documentation is evidence of a sophisticated fraud, not evidence that a victim was negligent. The FOS takes account of the quality of the fraudulent presentation. A victim who was provided with what appeared to be genuine regulated financial product documentation cannot be held to have accepted investment risk in a fraudulent scheme.

“The FCA register shows the firm is genuine — we cannot be held responsible for clone firms.”

The bank’s obligation to protect customers from investment fraud does not disappear because the fraudster was sophisticated. Payment Services Regulations 2017 regulation 77 requires banks to identify suspicious payment patterns. Banks have access to shared fraud intelligence databases listing known clone firm accounts. If the bank paid a known bad actor, it failed its own obligations.

. For advance-fee fraud often combined with clone firms, see our

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Not legal advice. This guide is for general information only. For advice specific to your circumstances, consult a regulated legal professional or contact Citizens Advice.