London Daily

Focus on the big picture.
Sunday, Aug 30, 2026

Victims lose average of £45,000 in investment scams

Victims lose average of £45,000 in investment scams

Victims lost an average of £45,242 last year after investing with fraudsters imitating genuine investment firms.

More than £78m was lost in total, according to fraud reporting centre Action Fraud.

Reports of clone firm investment scams rose by 29% in April - at the time of the first national lockdown - compared with the previous month.

A UK financial watchdog warned people to be alert, particularly when their finances were stretched.

How the clone scams work


Scammers set up clone firms using the name, address and firm reference number (FRN) of real companies authorised by the regulator - the Financial Conduct Authority (FCA).

They then send out sales materials linking to the websites of legitimate firms, to trick potential investors into thinking they are dealing with the real firm.

They use their own, similar contact details, so victims still think they are dealing with the genuine firm as they invest money.

Losses can be high as fraudsters tend to encourage large or regular investments before disappearing with the money.

'Convincing'


The ongoing financial impact of Covid-19 may make people more susceptible to clone scams, the FCA said.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: "Fraudsters use literature and websites that mirror those of legitimate firms, as well as encouraging investors to check the firm reference number (FRN) on the FCA Register to sound as convincing as possible."

He said alerts were raised about 1,100 firms, including clones, last year - twice as many as the previous year.

He said the authorities were taking down clone sites when discovered.

"When it comes to clones, I cannot emphasise enough how important it is to double check every detail," Mr Steward said.

One victim, called Janet, said: "After searching the internet for high-return bonds, I received a call the next day about investing in student accommodation.

"I found legitimate details of the company online - everything seemed genuine, so I invested.

"A few months later, after a couple more investments, I started to get a bit worried - I still hadn't received confirmation of the latest investment.

"I tried to call the contacts I had been speaking to, but the numbers were invalid. It was clear I had been scammed.

"I had lost £40,000."

How to avoid scams


The ScamSmart campaign, run by the FCA, has tips to protect yourself from clone investment firms:

*  Reject unsolicited investment offers whether made online, on social media or over the phone. Be wary even if you initiated contact

*  Always check the FCA register to make sure the firm is authorised and check the FCA warning list of firms to avoid

*  Only use the telephone number and email address on the FCA register, not the contact details the firm gives you, and look out for subtle differences

*  Consider seeking impartial advice before investing

Newsletter

Related Articles

0:00
0:00
Close
Genetic Study Finds Medieval Britain’s ‘Conquest Man’ Had Scandinavian Origins
Kemi Badenoch Plans Conservative Frontbench Reshuffle After Cleverly Departure
Nissan Sunderland Plant Highlighted as Key Economic Anchor for North East England
UK Arts Report Finds Women Face Persistent Barriers to Career Progression
Private Equity Consolidation of UK Veterinary Practices Raises Consumer Cost Concerns
South West Water Ranked Worst in England for Environmental Performance
British Train Drivers Secure 3.6% Pay Rise, Averting Strike Threat
UK Prosecutors Consider Charges Against Officers in Undercover Policing Scandal
James Cleverly Leaves Conservative Shadow Cabinet to Run for London Mayor
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
Bank of England Holds Interest Rate at 3.7% as Growth Stalls and Inflation Eases
UK Government Announces Electricity VAT Cut and £2 Bus Fare Cap
UK Officials Highlight 80 Years of Diplomatic Relations With Philippines
Heavy Rain Disrupts Parts of England After Weeks of Extreme Summer Heat
More Than 200 Extra Police Officers Deployed Across Cleveland After Violent Incidents
Burnham Meets Northern Ireland Leaders for Talks on Economy and Youth Employment
Burnham to Abstain From UK Assisted Dying Vote
NHS Leaders Warn of Severe Financial and Staffing Pressures Ahead of Autumn
UK Treasury Prepares October Budget as Defense and Public Spending Pressures Mount
Scottish Government Publishes Draft Bill for Second Independence Referendum
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
UK and Ukraine Agree AI-Focused Defense Technology Partnership
US Reportedly Weighs Falkland Islands Policy Shift to Pressure UK Over NATO Spending
UK Government Mobilizes Emergency Aid as British Nationals Remain Missing After Nepal Floods
UK Hospitality Industry Reports Stronger Summer Trading but Seeks Tax Relief
Reform UK Proposes £30 Tax Credit for Long HMRC Helpline Waits
Labour Debates Caps on Political Donations Ahead of Future Elections
England Accelerates Housing and Planning Reforms Amid Affordability Crisis
NHS Expands Walk-In Community Health Centers to 40 Locations
UK Regulators Expect Meta to Apply Stronger Child Safety Standards Globally
UK Groups Demand Faster Transport Decarbonization After Extreme Summer Weather
UK Launches 10,000 Work Experience Placements as Youth Unemployment Concerns Rise
UK Government Faces Difficult Autumn Budget Choices Over Defense, Spending and Taxes
UK Government Rejects Calls to Slow AI Data Center Expansion
IMF Raises UK Growth Forecast to 1% Despite Global Supply Chain Risks
UK Unsecured Loan Defaults Reach Highest Level Since 2009
UK Energy Price Cap to Rise 4% to Three-Year High of £1,723
More Than 30 Britons Reported Missing After Deadly Nepal-Tibet Floods
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
Police Intensify Investigation Into Organised Crime-Linked Violence in Middlesbrough
UK Small Businesses Face Continued Revenue and Tax Pressures, Federation Says
M&G Real Estate Buys West Sussex Affordable Housing Portfolio for £29 Million
Royal Navy Warship HMS Tamar Visits Cambodia for Regional Security Engagement
UK Government Brings Forward Benefit Payments Ahead of August Bank Holiday
Four Men Plead Guilty to Arson Attack on Jewish Community Ambulances in North London
Ofgem Raises Great Britain’s Household Energy Price Cap by Four Percent From October
UK Government Rejects Green Party Call for Artificial Intelligence Datacentre Moratorium
Millions of UK Benefit Recipients Receive Payments Early Ahead of August Bank Holiday
UK Prime Minister Meets Northern Ireland Leaders in Belfast Over Budget Crisis
Crypto Tax Gains Reach One Point Three Eight Billion Pounds Among UK Investors, HMRC Data Shows
×