Cloning scams are now the top fraud threat to people wanting to invest, a new study shows*.
The Investment Association said there were 478 cases of firms being impersonated by fraudsters in the second half of 2024 alone.
Nearly a quarter of these scams succeeded, costing investors £2.7m. Advances in artificial intelligence are likely to make future cloning attempts even more convincing and sophisticated in nature.
These brand cloning scams involve criminals creating a nearly identical duplicate of a genuine website or email, or creating a fake WhatsApp group, using a reputable company’s logo and brand, to trick people into parting with their money, thinking they’re making a genuine investment.
Adrian Hood, Regulatory and Financial Crime Expert at the Investment Association, said: “Criminals will use a variety of means to trick people into parting with their money…That’s why we’re urging consumers to stay vigilant.
“With cloning scams topping the list of threats, consumers should double check whether websites or emails are legitimate before transferring any money. The growth of AI is likely to see increasingly sophisticated scams, with criminals better able to mimic legitimate firms.”
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