Cloning scams remained the most common fraud facing prospective investors last year, according to new data from the Investment Association (IA), which warned that criminals are increasingly mimicking legitimate firms to steal money.
The IA’s annual fraud statistics, based on incidents reported by member firms, reported that 1,111 cases of brand-cloning scams were identified last year, representing 67% of all reported frauds.
Cloning typically involves criminals creating near-identical versions of genuine websites, emails or WhatsApp groups, using a firm’s branding to convince victims they are dealing with an authorised provider.
This is the second consecutive year in which cloning has been the dominant threat to consumers. As such, the trade body for the investment management industry has urged anyone looking to invest to remain alert to possible cloning scams.
Adrian Hood, regulatory and financial crime expert at the IA, said: “Cloning scams can be highly convincing. That’s why, as more people start investing, it is vital that awareness of these scams grows, too.”
Another risk the IA highlighted was account-takeover fraud, where criminals use stolen personal information to change an investor’s address or payment details and redeem their holdings. There were 251 reports of this in 2025.
Despite the high number of fraud incidents, the IA said both firms and consumers are becoming more effective at limiting the financial impact, with losses falling by 70% year-on-year from £13.1m in 2024 to £3.9m in 2025. Firms prevented a further £19.6m in attempted fraud.
The trade body outlined three key steps for consumers to take when approached with future investment opportunities. First is to stop and check the Financial Conduct Authority’s (FCA) ‘Firm Checker’ to confirm a company is authorised and verify listed email addresses and URLs for any discrepancies.
Next, challenge and question whether the offer could be fake and whether promised returns appear unrealistic.
Lastly, protect yourself and others by contacting the genuine investment provider immediately and report the incident to Report Fraud.
Lucy Castledine, director of consumer investments at the FCA, said: “Fraudsters are ruthless and will stop at nothing to steal your money, including impersonating well-known, authorised firms.
“Every year, people lose life-changing sums to these scams, and the consequences can be devastating.”