In plain English
What Clone firm means
Clone firms are impostors. They borrow the identity of a real authorised firm so victims think they are dealing with a regulated business when they are not. Scammers may copy a firm reference number, use a nearly identical web address, or direct victims to contact details that do not belong to the real firm.
Why it matters
Clone firms are dangerous because they can defeat a quick first check for authorisation. If a client uses the scammer’s contact details instead of the regulator register, the fraud can look convincing. This matters most in high-pressure sales of investments, CFDs, forex, crypto, or other speculative products.
Example
A scammer may call a trader claiming to represent an FCA-authorised broker and send a fake website that uses the broker’s logo and an authentic-sounding firm name. The page may even list a real registration number, but the phone number and domain belong to the clone, not the authorised company.
Quick answers
Common questions
Is a clone firm a regulated firm?+
No. It is an impersonator using the identity of a real authorised firm to deceive clients.
What is the safest way to verify a clone firm claim?+
Check the firm on the regulator’s official register and use only the contact details shown there.
Sources