Attack of the clone firms: over £78 million stolen in 'clone' firm investment scams

New warning from Action Fraud, the City of London Police and the Financial Conduct Authority (FCA).

• Number of ‘clone firm’ investment scams reported increased by 29% as UK went into first lockdown
• Victims scammed out of more than £45,000 each, on average
• 77% of investors do not know or are unsure what a ‘clone investment firm’ is
• FCA and Action Fraud advise investors to only use contact details on the FCA Register to help avoid ‘clone firm’ scams

What is a ‘clone firm’ investment scam?

‘Clone firms’ are set up by fraudsters using the name, address and ‘Firm Reference Number’ (FRN) of real companies authorised by the FCA.

The criminal gangs running these scams can engage with victims through a number of channels. Often they will take out adverts on social media platforms and search engines. Victims will then click on these adverts and be taken to exact replicas of websites belonging to genuine investment firms. The most sophisticated criminals will even clone the website domain name. Once victims have registered their interest, they’ll be contacted by the fraudsters, who often obtain the names of genuine employees of investment firms and create seemingly legitimate company email addresses, but with very subtle changes.

There have also been instances of investors inputting their contact details into genuine price comparison websites and then being phoned by criminals purporting to be from a well-known, legitimate investment firm. Another tactic used by these criminals to dupe investors is to send victims sales materials linking to websites of legitimate firms.

The returns being promised by these criminal gangs are often modest so as not to arouse suspicion, but slightly better than the market rate, therefore appealing to those looking for long term, ‘safe’ investments.

In the end, victims will end up transferring their savings directly to criminal gangs, under the false belief that they are sending them to a legitimate investment firm. Often, victims  will not realise that they’ve been scammed until months later, when they fail to receive quarterly returns or investment reports.

Superintendent Sanjay Andersen, from the City of London Police’s National Fraud Intelligence Bureau, said:

“The coronavirus pandemic has caused many people to feel financial worry and uncertainty - something which criminals will feel no remorse about capitalising on. We have sadly seen an increase in the number of investment fraud reports in 2020, compared to the previous year, with a spike in reports in the summer, after the first national lockdown was lifted.

"This new trend of 'clone firms' is particularly worrying as it makes it harder for people to spot a scam. Investing any amount of money comes with an element of risk and its important people take time to do their research by visiting www.fca.org.uk/scamsmart and seek independent impartial advice from an expert.

“If you think you’ve already invested into a fraudulent scheme, report it to Action Fraud.”

Mark Steward, Executive Director of Enforcement and Market Oversight, FCA, said:

“Clone investment scams are sophisticated and extremely difficult to spot. Last year we received over 3767 reports of clone scams to our consumer helpline. Fraudsters use literature and websites that mirror those of legitimate firms, as well as encouraging investors to check the Firm Reference Number (FRN) on the FCA Register to sound as convincing as possible.

“If you’re considering an investment, visit the FCA Register to make sure the firm you’re dealing with is authorised. Use the contact details on our FCA Register, not the details the firm gives you, and check for subtle differences to avoid ‘clone firm’ scams. And if you’re still unsure, call our consumer helpline for further information. When it comes to clones, I cannot emphasise enough how important it is to double check every detail.”

How to protect yourself

Even though two in five (38%)³ investors said they would check the company’s Firm Reference Number (FRN), checking this alone isn’t enough. Criminals carrying out ‘clone firm’ investment scams will often copy FRN numbers and encourage victims to check the number on the FCA Register to prove their legitimacy.

Anyone considering an investment opportunity should double-check all the details of a firm, not just the FRN, on the FCA register. This includes the telephone number and it is important you only use the number on the FCA Register to make contact with the firm.

Remember,

1.Reject unsolicited investment offers whether made online, on social media or over the phone. Be wary even if you initiated contact.

2. Always check the FCA Register to make sure you’re dealing with an authorised firm and check the FCA Warning List of firms to avoid.

3. Only use the telephone number and email address on the FCA Register, not the contact details the firm gives you and look out for subtle differences.

4. Consider seeking impartial advice before investing.

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 fallen victim to an investment fraud, report it to Action Fraud as soon as possible online at www.actionfraud.police.uk or by calling 0300 123 2040.

Action Fraud News 27-01-2021.

Beware HMRC Tax Refund rebate Scam doing its rounds

 

The above images show a local resident received the message on her mobile. 

The screenshots have masked the links for obvious reasons, but one was passed to Bexley Watch and showed the link navigates to a 'Deceptive site and blocked' (red image). 

The other is a mobile 07943499453 she was called from and again it is doing its rounds as another resident had a similar call. Both of them did not return the call nor clicked on the suspicious links. The mobile number that called was checked on the https://who-called.co.uk/ site and revealed its rating as 'Dangerous' as shown on the screenshot.

The residents have reported the scams to the authorities. 

Example of an actual audio of HMRC scam message that did the rounds about Dec/Jan time from 0345 300 3900 an automated call regarding a fraud and arrest. He did not fall for that bait but contacted HMRC who told him the number is the same but that it was 'cloned'.

Ways to spot a tax scam

It could be a scam if it:

• is unexpected
• offers a refund, tax rebate or grant
• asks for personal information like bank details
• is threatening
• tells you to transfer money.

Self Assessment customers can complete their tax return online and help and support is available on GOV.UK.

To protect against identity fraud customers must verify their identity when accessing HMRC’s online services. They must have two sources of information including:

• credit reference agency data
• tax credits
• P60/payslip
• UK Passport

If you’re concerned about falling victim to a potential scam, remember:

Stop:

• Take a moment to think before parting with your information or money.
• Don’t give out private information or reply to text messages, and don’t download attachments or click on links in texts or emails you weren’t expecting.

Challenge:

• It’s ok to reject, refuse or ignore any requests - only criminals will try to rush or panic you.
• Search ‘scams’ on GOV.UK for information on how to recognise genuine HMRC contact and how to avoid and report scams.

Protect:

• Forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.
• Contact your bank immediately if you think you’ve fallen victim to a scam, and report it to Action Fraud.

Check recent contacts from HMRC to help you decide if a suspicious email, phone call, text or letter could be a scam. Visit Check a list of genuine HMRC contacts for further guidance.

Quad9 and DMARC free cybercrime protection

The Quad9 DNS service protects users from accessing known malicious websites, leveraging threat intelligence from several industry leaders and blocking an average of 60 million threats per day for users in 90 countries. It improves your system’s performance, plus it preserves and protects your privacy.

Quad9 and DMARC have been set up by the Global Cyber Alliance (GCA). The GCA is a non-profit organisation aimed at tackling cyber crime that has been set up by the New York County District Attorney, City of London Police and the Center for Internet Security. 

What is Quad9

Quad9 is a free security solution that uses DNS to protect your system against the most common cyber threats. It improves your system’s performance, plus, it preserves and protects your privacy. It’s like an immunization for your computer.  

Setting up Quad9 requires just a simple change. Most businesses and home users can update in minutes. 

Find out how to set up free services that stop you from visiting malicious websites and protect you from email fraud for home users and businesses.

You can quickly and easily set up the Quad9 service on your Mac or PC. Do it today!

How DNS Works

• Every website lives at a numerical IP address. Your Domain Name Server, or DNS, translates these numerical IP addresses into readable domain names we all know and remember. If your DNS settings are not working correctly, or you're still using defaults, you may be at risk for cybercrime and performance issues. Quad9 is a free security solution that uses DNS to protect your system against the most common cyber threats. It improves your system's performance, plus, it preserves and protects your privacy. It's like an immunization for your computer. Learn more at quad9.net.

Introduction to Quad9 DNS Service

• Executive Director, John Todd, gives an overview of the Quad9 DNS Service and explains the benefits of its security and privacy features. For more information, please visit quad9.net.

How do to set it up on Windows PC

How to set in up on a Mac PC

How to Set Up Quad9 Connect on Your Android Device

Visit ActionFraud for more information on Quad9 and DMARC free cybercrime protection, or at our blog with Useful Links.

Coronavirus (COVID-19) vaccine and vaccination (NHS)

Coronavirus (COVID-19) vaccine [NHS]

The coronavirus (COVID-19) vaccine is safe and effective. It gives you the best protection against coronavirus.

Coronavirus (COVID-19) vaccine

[Page last reviewed: 21 January 2021, Next review due: 4 February 2021]

How you will be contacted for your coronavirus (COVID-19) vaccination [NHS]

The NHS will contact you when it's your turn to have the coronavirus (COVID-19) vaccination.

The vaccine is being offered at larger vaccination centres, pharmacies and some local NHS services such as hospitals or GP surgeries.

When it's your turn, you'll be contacted by letter, text or email with information on how to book your appointment.

More people are being offered the vaccine every week.

How you will be contacted for your coronavirus (COVID-19) vaccination

[Page last reviewed: 21 January 2021, Next review due: 4 February 2021]    

Scam alert: Amazon gift card COVID-19 email requests

A new twist on an old scam has emerged, in which fraudsters are using the pandemic as the perfect excuse to trick people into buying them Amazon gift cards.

We’ve already exposed the fake texts and calls about the COVID-19 vaccine, sent by criminals attempting to steal personal data and card detail, but now we’ve seen fraudsters hacking into email accounts and using coronavirus isolation as a hook to target victims.

We often hear from scam victims who received a seemingly innocent email from a friend, relative or work colleague only to discover that they were communicating with a fraudster all along. 

Once an email account is hacked, criminals will try every trick in the book to make money, including sending emails to their contacts list. 

A common tactic is to ask them to buy an Amazon gift card (more often than not, as a present for a “niece”) offering a spurious reason as to why they can’t purchase this themselves – and the pandemic has given scammers the perfect excuse.

How the gift card scam works

As the recipients are likely to trust the address of the sender, they assume the request is genuine and kindly agree to purchase the gift cards. 

Now the scammer can simply ask you to share the serial numbers so that they can cash them in. 

Though the Amazon gift card scam is the one most commonly reported to Which? be cautious of any message asking you to make a purchase or divulge personal data.

If you receive a call you believe to be fraudulent, hang up. If you are suspicious about an email you have received, forward it to report@phishing.gov.uk. Suspicious text messages should be forwarded to the number 7726 which is free of charge.

If you believe you are the victim of a fraud, please report this to Action Fraud as soon as possible by calling 0300 123 2040 or visiting www.actionfraud.police.uk.

Source: Scam alert: Amazon gift card COVID-19 email requests [18 January 2021]

More on Which? on SCAMS.

WIN! Design a Croods 2 inspired treehouse and win it for your local community

 

In partnership with ‘The Croods 2: A New Age’ and Co-op, we want children up to the age of 16 to design their very own Croods 2 inspired treehouse for their local community. What’s more, the winning entry will be brought to life and built within a nearby Wildlife Trust location to be enjoyed by the public for years to come!

What do you need to do to enter?

Head over to Co-op Insurance website to download the treehouse template and top tips for entering

Design a Croods 2 inspired treehouse for your local community – it can be as wacky as you want, let your imagination run wild!

You can draw, paint, use computer software or even cave drawings to create your design, but above all be sure to think about how this could be used by the community and bring a lot of fun.

Share the design on Facebook, Twitter or Instagram using the hashtag #Croods2Treehouse and tag Co-op (@coopukinsurance on Facebook and Twitter) and Neighbourhood Watch Network (Facebook: @ourwatch; Twitter: @N_Watch and Instagram: @neighbourhood.watch.insta) to enter.

The competition closes on 22nd February and the winner will be contacted within 5 days via social media. The treehouse will be built by 26th March, just in time for the film’s release and Easter holidays!

See the attached flyer, or click here (pdf), for more details.

View the fun The Croods2 fun activity pack here to keep children entertained whilst they are home schooling. Please feel free to share this with families in your area.  If you cannot print at home and would like an activity pack and competition entry template posted directly to your door along with a treehouse template to enter the competition please email croods2@isg.media.

COVID-19 VACCINE FACT CHECK - Spotting a scam

Spotting a scam

The COVID-19 vaccine is free of charge on the NHS.

The NHS will never ask for:

• your bank account or card details
• your pin or banking password
• copies of personal documents to prove your identity such as your passport, driving licence, bills or pay slips.

If you think you have been a victim of fraud or identify theft, report it to Action Fraud on 0300 123 2040.

 

For details on how you will be contacted visit the NHS about the COVID-19 vaccination when it's your turn.

Page last reviewed: 21 January 2021
Next review due: 4 February 2021