London Daily

Focus on the big picture.
Thursday, Nov 27, 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
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
×