Clone Firm Loan Companies – What To Be Aware Of

There is something that seems to be on the increase called a clone firm scam, so what does this mean?

The FCA (Financial conduct Authority) have received reports letting them know that clone firm scans are on the rise in recent years. The full scale of this scam is not known but it is estimated that around £78 million has been lost to these types of scams last year alone.

The recent Covid Pandemic is where there was a large peak in scams and sadly have continued to rise ever since.

People are more unsettled about their finances than ever before. Many people have lost money by paying back fake loan companies hundreds in excess interest. Clone companies are often praying on these types of people by offering them deals that seem too good to be true whilst pretending to be a legitimate business.

The clone firm scam is where someone pretends to be a company that is a well established business that has a good reputation, to use this company’s name as a way of extorting money from a potential victim. The scammers will either provide high interest loans or they will use your details to apply for loans in your name and then disappear with your money.

Many smart people believe they won’t be scammed

The Financial Conduct Authority carried out a study and did thorough research that found that 42% of people who invest are concerned about where to invest money since the pandemic. The recent cost of living crisis has seen an increase of 77% of investments being made by people who are looking to improve their own financial situations.

Lots of investors are confident they can tell when someone is trying to scam them, often boasting that they are too smart to be caught out. It may surprise you to know how many people fall for a firm clone scam, 75% of people who make regular investments said they were confident they would not be duped.

From the research that was completed 77% of investors had never even heard of a scam called a clone firm scam, which is a worrying statistic.

Seeking the right help with loans

If anything you have read within this article concerns you we would always advise that you get in touch with us, we can offer free impartial advice on ways to look out for scammers please feel free to contact us for an informal chat, our team or friendly staff are more than happy to assist.

Forward Finance is a family run business that has been well established in the Hertfordshire area for many years. Our reputation has been built on trust and integrity and always being open and transparent with our customers. If you would like to talk to us about other services we offer please do not hesitate to contact us!