Action Fraud is warning that £36million has been lost to investment fraud through cloned company fraud in 2021. The scam watchdog’s research found that a third (34 percent) of those between the ages of 55 and 70 were targeted by criminals in the first half of the year. Average losses in savings and investments came to around £39,218 per victim, according to Action Fraud.
This particular scam involves criminals replicating or “cloning” by using the name and identifiable information of a company online to trick unsuspecting investors.
Once a fake website is fully operational, fraudsters lure potential customers onto their site with offers of favourable investments and money-making opportunities.
Those who were targeted by the scam explained how they were asked to fill out a form on the website which asked for their personal details.
Scammers then asked their victims to invest their money in non-existent bonds resulting in significant financial losses.
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Craig Mullish, a Temporary Detective from the City of London Police, discussed how ‘closed’ scams tend to work and how people can prevent themselves from falling into them.
Detective Mullish said: “Every year, victims lose thousands of pounds to criminals imitating genuine investment firms with some even losing their life savings.
“This trend of ‘cloned companies’ is particularly worrying as it makes it even harder for people to spot a…