London Daily

Focus on the big picture.
Saturday, Jul 05, 2025

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
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
×