Thought PiecesJuly 20 2020

Clone Firms: Enhancing your digital protection

1 min read

Written by Wigmore Firms

With finance becoming increasingly digital, scamming has also evolved. As a result of the appearance of new digital intermediaries such as crypto currencies, and social media serving as an easy way to reach people, investment scams have changed substantially. According to a poll by the Financial Conduct Authority, a financial regulatory body in the United Kingdom, under 25s were six times more likely to trust an investment offer that was made through social media, than those over 55.

Clone firms are one of the most common type of scam. They pretend to be well-established authorized firms with legitimately looking websites materials, and staff. The problem does not only extend to smaller investment firms, but wealth management companies such as UBS AG who have been the subject of cloning, and telling apart the clone and the legitimate company can sometimes prove difficult.

When contacted by a clone firm seek professional and independent advice from trusted firms and individuals, such as a family office, as they can help to protect you and your wealth from clone firms.

Unconventional digital investment products, such as cryptocurrencies, are also increasingly prone to scams with an estimated $1.7 billion in cryptocurrencies stolen or scammed in 2018, according to CipherTrace Cryptocurrency Intelligence.

For further information on how to avoid the dangers of an increasingly digital world, read our blogpost on cyber security.