Investment scams move up a gear The number of fraudsters using the details of legitimate firms to rope unsuspecting consumers into investment scams increased by 29% in the year to September 2020.

The methods employed by investment scammers have become increasingly sophisticated, with the Financial Conduct Authority (FCA) issuing a warning in January against these so-called ‘clone firm’ scams2.

What is a clone firm?

According to the FCA, clone firms are ‘fake firms set up by scammers using the name, address, and ‘Firm Reference Number’ (FRN) of real companies authorised by the FCA.’

The FCA currently has a warning list of ‘clone firms’ on its website, which you should check carefully before handing over your money:

Financial uncertainty can increase susceptibility

The climate of uncertainty caused by the pandemic has left many consumers worried about their finances, which in turn has increased their vulnerability to ‘too good to be true’ investment offers. However, with an average of £45,242 lost by victims of ‘clone firm’ investment scams in 2020, it pays to be cautious.

Don’t lose out

If you have any doubts whatsoever that an investment opportunity is legitimate, please speak with us. We can help you spot the signs of fraud and keep your hard-earned money where it belongs. 2FCA, 2021

It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.

Equity release will reduce the value of your estate and can affect your eligibility for means tested benefits.

Tax and Estate planning are not regulated by the Financial Conduct Authority

The value of pensions and investments can fall as well as rise. You may get back less than you invested.

CA Financial Services Ltd are an Independent Financial Adviser based in Sevenoaks, Kent. From our Sevenoaks offices, we offer IFA services throughout Tonbridge, Tunbridge Wells, Dartford, Orpington and across into Sussex and Surrey. Please call us on 01732 617 950 to book a free initial appointment.

CA Financial Services offer financial advice, pensions, investments, ISAs, Equity Release and Inheritance Tax Planning for the whole family. We have 14 years’ experience as Financial Advisers based from Sevenoaks and are truly independent, allowing us to give our customers the best financial advice possible.

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