Clone Firm Scams: How Fraudsters Copy Real Broker Licences
Clone firms borrow the name and licence number of a genuine regulated broker. Here is how they work and how to spot one.
A clone firm is a fraudulent operation that impersonates a genuine, authorised company. The scammer copies the real firm's name, licence number, registered address and sometimes even staff names, then builds a website on a similar domain. When a cautious victim checks the licence number on a regulator's register, it comes back valid — because it belongs to the real firm.
Why clones work
Clones exploit the fact that most people stop checking once they see a matching name and number. They are often promoted through social media ads, WhatsApp and Telegram groups, "account manager" cold calls and fake news articles. Some clone real brokers; others clone asset managers or banks and then offer "managed forex accounts".
Warning signs
- The domain is not the one listed on the regulator's register (for example a hyphenated or different top-level domain).
- Contact is mainly by WhatsApp, Telegram or a personal mobile number.
- You are asked to pay by crypto, card to a third party, or bank transfer to an account in a different company's name or country.
- An "account manager" pushes you to deposit more, or asks you to install remote-desktop software.
- Withdrawals require paying a "tax", "release fee" or "insurance" first.
- Guaranteed or unrealistically high returns.
How regulators help
The FCA Warning List has a specific category for clone firms, and CONSOB, the AMF, CySEC and others publish frequent warnings. IOSCO I-SCAN searches warnings from regulators worldwide in one place.
If you think you have found a clone
Contact the genuine firm using details from the regulator's register — not the website you found — and report the clone to the regulator. If you have already paid, contact your bank or card issuer immediately and report the fraud to the police (Action Fraud in the UK, the FBI's IC3 in the US). Be wary of "recovery" companies that contact you afterwards promising to retrieve your money for a fee — recovery scams frequently target people who have already been defrauded.