Clone firm
A scam that copies the name, address or licence number of a genuine regulated firm to look legitimate, while taking money through its own website, phone numbers and bank accounts.
Clone firms exploit the advice to "check the broker is regulated". The fraudster uses details of a real, authorised firm (its name or something very similar, its registration number, sometimes its address and staff names) so that a quick search of the regulator's register appears to confirm it is genuine. The contact details, website and payment instructions, however, belong to the fraudster.
Regulators such as the UK FCA and CySEC regularly publish warnings about specific cloned firms.
How to spot one
- The website domain, email address or phone number does not match those listed on the regulator's register.
- You are asked to pay into a bank account in a different name or country, or by crypto or card to a third party.
- The firm contacted you first, by cold call, social media or messaging app.
- Small spelling differences in the firm's name, or an unusual top-level domain.
Worked example
You find "Example Capital Markets Ltd" on a regulator's register with licence number 123/45. A website using that name and number asks you to deposit 5,000 euros. The register lists a different website and phone number. The safe course is to contact the firm using only the details on the register and ask whether the website is theirs. If it is not, it is a clone.
Practical note
Losing money to a clone firm is usually not covered by an investor compensation scheme, because you never dealt with the real firm. See how to check a broker licence, our regulator registers page and forex scam red flags.
Not investment advice. This is general information and education, written without knowledge of your circumstances. It is not a recommendation to buy or sell any instrument. Past performance is not a reliable indicator of future results. Trading leveraged products carries a high risk of losing money. Risk warning