Clone firms: when scammers copy a real company

By the Blockhorizon Editorial Team · Updated 2 October 2026 · How we check facts

What is a clone firm?

A clone firm is a fake company that borrows the identity of a genuine one. The FCA says fraudsters pretend to be from firms it authorises, and calls this a clone firm. Clone firms are not authorised or registered themselves, but they try to convince you that they are.

The trick works because it turns a sensible habit against you. People are told to check a firm on the regulator’s register before investing. A clone firm makes sure that check appears to pass: the name, address and reference number you look up all belong to a real firm. What does not belong to the real firm is the person you are talking to.

Clone firms are not limited to one product. The FCA says they may offer bonds, shares, foreign exchange (FX) and cryptocurrencies that are non-tradable, worthless, overpriced or even non-existent.

How do clone firms copy a real company?

According to the FCA, clone firms often use the name and address of a genuine firm, or copy its firm reference number (FRN). They may also:

• copy the website of an authorised firm and make small changes, for example to the phone number;
• point you to the genuine firm’s website but use different details to contact you;
• give you the genuine firm’s details but the wrong phone number;
• use email addresses that look similar to the genuine firm’s, or use providers such as Outlook or Gmail.

The FCA says scammers may contact you unexpectedly by phone or email, through newsletters or social media, or even after you search for loans or investments online and submit your details.

Why is checking the register not enough on its own?

Because the register entry is real. In a 2021 warning the FCA said scammers “will often copy FRN numbers and encourage victims to check the FCA Register to prove their legitimacy”. A matching name and number only proves that the real firm exists, not that you are dealing with it.

Clone firms also have an answer ready when the contact details do not match. The FCA says they may claim that a firm’s contact details on the Firm Checker or the Financial Services Register are out of date. The FCA calls this unlikely, because it updates both services, on average, every 24 hours.

So the useful part of the register is not the name or number. It is the phone number, email and website listed there, which you then use to contact the firm yourself.

How do you check you are dealing with the real firm?

The FCA sets out four steps:

1. Search for the firm by name on the FCA Firm Checker.
2. Select the product or service you are looking for.
3. Check that the firm is authorised and has permission for that product or service.
4. Check that the contact details listed on the Firm Checker match the ones you have been given. If no contact details are listed, or the firm says they are out of date, call the FCA on 0800 111 6768.

The FCA also suggests extra checks: the firm’s own website, directory enquiries and Companies House. When you visit the Financial Services Register or the Firm Checker, check that the web address is correct and has no small changes that would mean it is fake. Type the address yourself; the FCA’s advice is: “Never click on links in emails or on company websites.”

Outside the UK the principle is the same. Use your own regulator’s register, and the contact details shown there. For crypto exchanges and wallet providers, see how to check if a crypto firm is authorised.

Do clone firms target crypto investors?

Yes. The FCA lists cryptocurrencies among the products clone firms push. Cloning also shows up after a loss: the FCA says many fake firms in recovery room scams use the name, FRN and address of firms and individuals who are FCA authorised, offering to get back money you have already lost for an upfront fee. Read more in our guide to recovery scams.

Some fraudsters go further and impersonate the regulator itself. The FCA says it never uses webmail providers to contact consumers, so an “FCA” message from a Gmail or Outlook address is a warning sign.

For the wider list of warning signs, such as guaranteed returns and pressure to pay quickly, see crypto scam red flags.

How common are clone firm scams?

The figures here are from 2020. In a January 2021 press release, the FCA said more than £78 million had been stolen in clone firm investment scams, based on Action Fraud data. It said consumers reported average losses of £45,242 each in 2020 when investing with fraudsters imitating genuine investment firms.

The same release found a knowledge gap. In the FCA’s survey, 75% of investors said they felt confident they could spot a scam, yet 77% did not know, or were unsure, what a clone investment firm was. The FCA’s Mark Steward said: “When it comes to clones, I cannot emphasise enough how important it is to double check every detail.”

These are UK figures for 2020, reported to Action Fraud. They are not current totals and do not cover other countries.

What are the risks if you deal with a clone firm?

A clone firm is an unauthorised firm, whatever name it uses. The FCA says that if you deal with an unauthorised firm you won’t be covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS), so “it’s unlikely you’d get your money back.”

You may also be asked for bank or card details, or to download software or an app. The FCA advises never giving out bank or card details unless you are certain who you are dealing with, and not downloading software or an app from a source you don’t trust, because scammers may be able to take control of your device and access your bank account.

If you think you have been contacted by a clone firm, stop all contact and report it. The FCA asks people to report potential scams to it on 0800 111 6768 or through its contact form.