Clone firm
Also known as: cloned firm, clone firm scam
Clone firm: A clone firm is a fraudulent operation that copies the name, registration number, address or other details of a genuine authorised firm to make itself look legitimate.
How does a clone firm scam work?
Because the copied registration number is real, a quick search on a regulator’s register appears to confirm the firm. The difference is usually in the contact details: the website address, email domain or phone number does not match the one listed on the register. The UK FCA advises using only the contact details shown on its Firm Checker: forex scams.
How can a clone firm be identified?
Compare the website address, email and phone number with those on the regulator’s register, and contact the firm through the registered details to confirm that the offer is genuine: how to choose a forex broker.
Worked example
Illustrative only: a caller from “Example Markets Ltd” gives a registration number that matches a genuine authorised firm on the register. The register lists the firm’s website as examplemarkets.example, but the caller’s emails come from examplemarkets-invest.example and the payment details point to an account in another company’s name. The register details and the caller’s details do not match, which indicates a possible clone.
Sources
- Protect yourself from scams, Financial Conduct Authority
Learn more
- Forex Scams: How to Spot Them and What to Do
How forex scams work, the warning signs, signal and trading bot scams, clone firms, withdrawal blocks, recovery scams and what to do after losing money.
- How to Choose a Forex Broker: A Checklist
How to choose a forex broker: regulation, client money protection, total trading costs, order execution, platforms and withdrawal terms, with a checklist.