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Financial services

Warning: Clone Firm Scam Targets UK Residents with False Authorization Claims

Strategic Insights

— 1 min read

The Financial Conduct Authority (FCA) has issued a warning to UK residents about a clone firm scam that involves fraudsters copying the details of authorized firms to convince people that their firm is genuine. This type of scam involves a firm that is not authorized by the FCA, but is contacting people pretending to be an authorized firm. The FCA has identified a specific clone firm that is using the name htbsavings.co Federation, which is a copy of the FCA-authorized firm Hampshire Trust Bank Plc.

Key Takeaways:

  • The clone firm, htbsavings.co Federation, is using the name and details of Hampshire Trust Bank Plc to scam people, but has no connection with the authorized firm.
  • Scammers may give out false details, including email addresses, telephone numbers, postal addresses, and Firm Reference Numbers, and may mix these with genuine details of authorized firms.
  • The FCA has warned that dealing with a clone firm means you won't have access to the Financial Ombudsman Service if you want to complain, and you won't be protected by the Financial Services Compensation Scheme (FSCS) if things go wrong.
  • If you sent money to a fraudster on or after 7 October 2024, you may be covered by protections introduced by the Payment Systems Regulator (PSR).
  • To protect yourself, only deal with financial firms that are authorized by the FCA, and use the FCA Firm Checker to verify a firm's authorization and contact details.

Statistics:

  • Almost all firms and individuals must be authorized by the FCA to carry out or promote financial services in the UK.
  • The FCA has identified a specific clone firm, htbsavings.co Federation, that is using the name and details of Hampshire Trust Bank Plc to scam people.
  • The scammers may use false details from multiple authorized firms, including email addresses, telephone numbers, postal addresses, and Firm Reference Numbers.
  • If you deal with a clone firm, you won't have access to the Financial Ombudsman Service (approximately 30,000 complaints were resolved through the Ombudsman Service in 2020) or protection from the Financial Services Compensation Scheme (which has paid out over £1 billion in compensation to UK consumers since 2001).

Sources:

  • Financial Conduct Authority (FCA)
  • FCA Firm Checker
  • Payment Systems Regulator (PSR)
  • Financial Ombudsman Service
  • Financial Services Compensation Scheme (FSCS)

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