ACTION FRAUD and the City of London Police are working with the Financial Conduct Authority (FCA) on issuing a warning alert in the wake of reports of ‘clone firm’ investment scams increasing by 29% in April last year compared to March, when the UK went into its first full lockdown.

Action Fraud’s reporting data reveals losses of more than £78 million between January and December 2020, with victims losing £45,242 each on average as a result of investing with fraudsters imitating genuine investment firms.

The ongoing financial impact of the Coronavirus may also make people more susceptible to these types of clone scams. On that note, 42% of investors have stated that they’re currently worried about their finances because of the pandemic, while over three-quarters (77%) have made, or plan to make an investment within the next six months to help improve their financial situation.

However, even the most experienced investor could be at risk….

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