The Financial Conduct Authority (FCA) has published warnings about two clone firms falsely claiming to represent legitimate financial services providers in the UK. These fake companies are using the names and details of the retail trading company Hargreaves Lansdown and the banking giant Westpac to scam people into investing money that is unlikely to be returned.

FCA Issues Warnings against Clone Firms Targeting UK Investors

According to the FCA, the Hargreaves Lansdown clone operates under various names and contact details. It is falsely claiming the company number and FCA product reference number of the real Hargreaves Lansdown PLC to appear genuine. The fraudsters are contacting potential investors via phone and email, as well as through websites such as hl-invest.email and corporate-hl.co.uk.

Similarly, the Westpac clone firm "WestpacInt’l" or “Westpacint Bank" promotes its services through the website westpacint.com/home and phone number +61488827045. This entity has no connection to the Westpac Banking Corporation.

The FCA warns that any investments made through these clone firms will not be protected by the Financial Services Compensation Scheme. People are unlikely to get their money back if the fake companies cease operations.

"We urge consumers to check the FCA Register before dealing with any financial services company," said Mark Steward, the Executive Director of FCA. "Authorized firms must be registered with us, which gives customers greater protection. If in doubt, contact the firm directly using the details on our register."

The warnings are the latest efforts by the FCA to combat an increasing number of clone firm investment scams. Reports of such frauds have risen 29% recently. Consumers can report suspicious firms to the FCA by calling the regulator or using its online contact form.

The strategy of establishing clone firms is regrettably widespread. In November, the FCA warned about clones of well-known platforms such as the social trading platform eToro, and scammers pretending to be the publicly listed IG Group. Additionally, in the same month, fraudsters exploited the names and trademarks of Santander and Saxo Bank.

Beware the Clones

Clone firms are fake companies set up by scammers to impersonate real, FCA-authorized investment firms. They copy the name, address, firm reference number, and even the website of legitimate companies. These fraudsters then use aggressive sales tactics to convince potential victims to invest in worthless or non-existent products.

Once they have created a convincing fake company, the scammers contact potential targets through channels like social media ads, search engine ads, cold calls, and emails. They direct victims to replica websites that look almost identical to the real company's site. On these fake sites, they promote fraudulent "investments" that purport to be offered by the legitimate firm they are impersonating.

Retail investors are particularly vulnerable to these tactics. The scammers sound authoritative and trustworthy, providing documents and literature with the cloned company's branding. Unwitting investors can easily be convinced to transfer life savings into these fake products. On average, victims of clone firm scams lose £47,000.