We reveal why clone firm investment scams are becoming more common, how they work and how to stay safe, as well as reveal red flags highlighted by loveMONEY readers who have been scammed.
We lose life-changing sums to clone scams
Over £78 million was lost to ‘clone firm’ investment scams in 2020 with victims reporting average losses of just over £45,000, according to Action Fraud.
Clone firms imitate genuine investment firms to trick people into investing thousands – and sometimes even 10s of thousands of pounds – in investments that actually don’t exist.
In this guide, we’ll cover why such scams are becoming more prevalent, how they work, the ways in which people are targeted, as well as how you can identify this scam.
If you’ve unfortunately fallen for a clone firm investment scam, we’ll also reveal what you should do next…