A clone broker is a fraudster using the name, licence number or address of a genuinely authorised firm. You spot one by comparing the website and contact details you were given with those on the regulator’s register: the real firm’s details will not match the clone’s.
How do clone firms operate?
Clone firms approach people through social media, messaging apps and adverts, often with an “account manager” who promises returns. They show a real licence number, which checks out if you only search the number, and then direct deposits to accounts or wallets that have nothing to do with the real firm.
What should I compare?
- The domain name, letter by letter, against the website listed on the register.
- The email domain of anyone who contacts you.
- The name of the account or wallet you are asked to pay into. A regulated broker takes payment in its own company name.
What are the behavioural red flags?
Guaranteed profits, pressure to act today, requests to install remote-access software, and a “tax” or “fee” that must be paid before a withdrawal is released are all signs of fraud.
What if I have already paid?
Stop sending money, keep every message and receipt, contact your bank or card issuer at once, and report the firm to your national regulator and police. Be wary of “recovery” services that contact you afterwards; they are often the same fraudsters.