FCA Warns of Clone Firm Scams as UK Investment Fraud Hits £649 Million

The Financial Conduct Authority is urging consumers to verify firms through its online Firm Checker tool before acting on any financial offer, after fraudsters were found to be impersonating authorised businesses to steal money.

Investment fraud cost UK consumers £649 million in 2024, according to data from City of London Police and Action Fraud, across 25,843 reported cases. The Financial Conduct Authority has posted a public warning that fraudsters are creating “clone firms” — fake businesses that copy the names, registration details and branding of genuine authorised firms — to deceive consumers into handing over money or personal data.

Pension fraud added a further £17.7 million in reported losses last year, with 519 cases recorded and an average of roughly £48,129 lost per day. Impersonating legitimate pension providers was among the most common tactics used.

The FCA’s Firm Checker tool lets consumers search for any financial services firm and confirm whether it holds the correct authorisation for the product or service being offered. The regulator advises checking that the telephone number, email address and website listed by the firm match those shown on Firm Checker before transferring any money or sharing personal details. Almost all financial services firms operating in the UK are required to be authorised or registered by the FCA — so if a firm can’t be found, that’s a warning sign.

But the scams don’t stop there. The FCA has also warned that fraudsters create fake versions of its own online services, including imitation Firm Checker pages. Consumers should type official addresses directly into their browser rather than clicking sponsored links or adverts.

Kent residents may be chiefly exposed. The county’s ageing population in several districts, combined with a large number of commuters holding investment and pension savings, makes the area an attractive target for clone firm and investment scams advertised through social media and search engines. No verified local figures for Kent-specific fraud losses are currently available from nationally aggregated data.

Fraud experts and consumer groups broadly welcome Firm Checker but caution it cannot prevent every scam on its own — sophisticated criminals can still build convincing fake interfaces or exploit the details of genuine authorised firms. Broader consumer education and stronger action against platforms hosting scam adverts are also called for.

Key information

• Use the FCA Firm Checker at the FCA’s official website to verify any firm before acting on a financial offer — search the firm’s name, confirm authorisation, and check all contact details match
• If a firm cannot be found on Firm Checker, contact the FCA consumer helpline for guidance
• Report suspected scams to Action Fraud (0300 123 2040) and to the FCA directly via its website
• The FCA’s Warning List of unauthorised and clone firms can be cross-checked alongside the Firm Checker for additional verification