The ongoing financial impact of Covid-19 is making people more susceptible to clone scams, according to the Financial Conduct Authority (FCA).
More than £3 million was stolen from East Midlands investors last year as a result of 'clone firm' investment scams.
Fraudsters set up clone firms using the name, address and firm reference number (FRN) of real companies authorised by the regulator - the Financial Conduct Authority (FCA). They then send out sales materials linking to the websites of legitimate firms, to trick potential investors into thinking they are dealing with the real firm.
Losses can be high as fraudsters tend to encourage large or regular investments before disappearing with the money.