Financial services watchdogs are warning an increasing number of scam web sites designed to look like real businesses are appearing online.
The Financial Conduct Authority (FCA) has voiced concerns about clone web sites in a briefing to financial firms.
The FCA web site lists more than 3,000 bogus financial advisers – and hundreds of these are clone web sites.
Fraudsters set up the sites to trick investors and consumers into believing they are dealing with a bona fide regulated adviser.
In reality, many are fronts for scams or phishing cons aimed at finding out financial information so the crooks can access bank accounts. Others are selling worthless shares and investments at high prices.
Scams on increase
“The number of fraudsters trying this clone web site scam has increased a lot over recent years,” said an FCA spokesman.
“Consumers should check out that they are dealing with a real firm, but advisers also have a responsibility to report any cloned web sites to us.
“Advisers should also warn their customers because if they lose any money to these fraudsters, they are not covered by the Financial Services Compensation Scheme and have little chance of getting any of their money back.”
The FCA has also told advisers to make sure they have a clear warning on their web sites that fraudsters have cloned their online platforms.
The FCA publishes warnings of bogus advisers and cloned web sites regularly.
Below are the warnings published in the past seven days – including two cloned web site alerts.
Warnings about bogus advisers
- Cash-Lands.com
- Cash Lands / Credit Xpress
- MFEX Capital Management LLP / MFEX Capital Fund Investors / MFEX Enterprise Trust Plc
- Brookepoint / Brookpoint Ltd / Brooke Point
- Kiyose Mergers
- Alliance Private Equity LLP
- Pareto Securities (clone web site)
- Encompass Wealth Limited
- Robinson Capital Partners
- 1 minute loan UK / Loan 1 minute UK
- Munroe Securities Limited (clone web site)
- Bradlodge Limited/ Bradlodge Corporate Trading
- Mason Securities LLC
Dealing with an unregulated firm
If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.
Checking if a firm is regulated
Go to the Financial Services Register to check if a firm is regulated in the UK.
Reporting a suspected bogus adviser
Find out how to report unauthorised advisers on the FCA web site
