Clone firm scams
How a clone firm scam copies a real company
In a clone firm scam, fraudsters set themselves up to look exactly like a legitimate, licensed financial business. You're shown the name, address, and licence number of the real company. Sometimes, the scammers build a convincing website that closely matches the authentic site, so you think the provider is fully regulated, and feel safe sending money their way.
This kind of scam targets people seeking investment services, foreign exchange or crypto opportunities, and even those just looking for currency exchange or money transfer. You might get approached by phone, over email, through a chat app, or see a search ad for what looks like the real firm's website, only to find it's a near-perfect copy.
The tactic is effective because most people verify a business only by its name. A licence number is easily grabbed from public sources, so its presence doesn't guarantee anything. Scammers may register confusingly similar domain names, maybe by changing one letter, or swapping .com for .co, making it hard to spot the difference.
Signs that a firm may be a clone
- The website displays contact information, like a phone number or email, that doesn’t match anything on the regulator’s register.
- While the licence number looks right, you notice that the name or address is slightly off, or the business type isn’t the same as what you find in official records.
- The provider reaches out to you first, especially out of the blue or with a deal that sounds urgent.
- Payment instructions direct you to a personal bank account or ask you to send funds to a country with no connection to the firm’s license.
- The website is only a few months old, or the web address almost matches the official one but is just a letter or two off.
Scammers copy-brand their emails and texts too, so it's useful to recognize the warning signs of phishing related to money. If one of these red flags appears, step back and cross-check. If you see a few together, hold off on any payment.
How to confirm you are dealing with the genuine company
- Check the official public register of your national financial regulator, or the EU-wide register if it applies, for both the company’s name and licence number.
- Match the address, website, and any contact details you have been given against the ones listed on the register.
- Only get in touch with the company using information (like phone numbers or email addresses) found on the official regulator’s register. Stay away from contact details in unsolicited emails or adverts.
- Manually type the company’s website address into your browser instead of relying on any link provided in a message or advertisement.
- Look for the firm and similar names in your regulator’s warning list. Some warnings only mention the copycat name, not the name they’re imitating.
Be aware the register can sometimes be out of date. If anything doesn’t fit, contact your regulator directly. For a detailed process, see how to check if a company is licensed. Avoid sending money if even small details don’t match up.
Frequently asked questions
How can I tell if a firm is a clone?
Check the licence number directly on the regulator's official register. If you see any mismatch between what you've been told and the register, whether it's the name, the website, or the address, treat the firm as suspicious. Don't trust a licence number alone or transfer funds to a personal account.
What should I do if I have already paid a clone firm?
You should contact your bank or payment service right away and ask them to recall or block the transfer if possible. Report the fraudulent business to your regulator and the police. Hold onto every email, payment reference, and screenshot as evidence. If you're contacted by someone who offers to recover your money for an upfront fee, be on guard: that's often another fraud.