Wiltshire residents reported losses of £4.3 million between January and December 2020, an average loss of over £22,750 across 189 reports in total from ‘clone firm’ investment scams.
Nationally a total of £78 million has reportedly been stolen with reported losses of more than £45,000 each on average.
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.
Fraudsters then send sales and marketing materials linking to websites of legitimate firms to dupe potential investors into thinking they are the real firm when they aren’t.
Action Fraud are urging residents not to deal with companies that are not authorised through the FCA, and verify their details through the FCA Register to make sure you’re dealing with the bonified firm.
Wiltshire Police Fraud Manager, Alison Wiles commented “Clone investment scams are particularly difficult to spot at first, fraudsters work hard to make them look incredibly convincing.
“But by following the advice to check the FCA’s Warning List and Register, it’s easy to double check you’re dealing with a legitimate, authorised firm. The cost of not doing so could be huge.
“Even savvy investors have been convinced by sophisticated looking scams so please do double, triple check before parting with your money. It can be tempting if an investment opportunity looks like a good chance to boost your savings, pension or income, but be vigilant and take extra care. Fraudsters will feel no remorse capitalising on people’s additional financial worry – they will not only set up fake websites or place adverts on social media but use email, text and phone calls to target their next victim.
In Wiltshire, those aged between 60 and 79 had a highest number of reports in the last year, with over 39% of victims within that age bracket and nearly two thirds (63%) of all victims were male. We’re asking for people to be extra cautious and spread the word to friends and family.
Investors can test if they can spot an investment scam from a smart investment by taking the Scam or Smart quiz, visit www.fca.org.uk/scamsmart to find out more.
If you think you’ve already invested into a fraudulent scheme, report it to Action Fraud on 0300 123 2040, or via their website at www.actionfraud.police.uk.
