Clone
Clone
A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for greater transparency, registers, and authorization, fraudsters have resorted to clone attempts to try to dupe investors.Fraudsters are constantly looking for new ways to scam consumers, but one technique that has been increasingly reported to regulators has been clones.This is a particular issue in the United Kingdom, with the Financial Conduct Authority (FCA) taking measures to crack down on clone firms.These scammers typically cold-call investors to promote shares, property or other investment opportunities that are non-tradable, worthless, overpriced, or even non-existent.How Do Clone Scams Work?In most jurisdictions, firms need to be authorized to sell, promote, or advise on the sale of shares and other investments.Some fraudsters simply claim to represent these authorized firms, or even try to change firms’ contact details on registers to look authentic.The scammers will then give their own phone number, address, and website details to possible victims.Most commonly, scammers claim to be from overseas firms that appear on the registers as these firms do not always have their full contact and website details listed.These entities may even copy the website of an authorized firm, making small tweaks or changes such as to the phone number listed.
A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for greater transparency, registers, and authorization, fraudsters have resorted to clone attempts to try to dupe investors.Fraudsters are constantly looking for new ways to scam consumers, but one technique that has been increasingly reported to regulators has been clones.This is a particular issue in the United Kingdom, with the Financial Conduct Authority (FCA) taking measures to crack down on clone firms.These scammers typically cold-call investors to promote shares, property or other investment opportunities that are non-tradable, worthless, overpriced, or even non-existent.How Do Clone Scams Work?In most jurisdictions, firms need to be authorized to sell, promote, or advise on the sale of shares and other investments.Some fraudsters simply claim to represent these authorized firms, or even try to change firms’ contact details on registers to look authentic.The scammers will then give their own phone number, address, and website details to possible victims.Most commonly, scammers claim to be from overseas firms that appear on the registers as these firms do not always have their full contact and website details listed.These entities may even copy the website of an authorized firm, making small tweaks or changes such as to the phone number listed.
Read this Term scams are on the rise, the Securities Commission Malaysia (SC) warned to the investing public this Friday, stating that there is an increasing amount of fraudsters trying to trick investors via clone firms.
In particular, the regulator warned that a number of capital market licensed entities had lodged reports with the Securities Commission of Malaysia, claiming that their corporate identities have been cloned by unknown persons or organizations.
As the name suggests, clone firms are fraudulent entities that copy details of a legitimate firm, such as their name, website, address, registration details, etc. Some even go to the lengths of completely copying a firm – from their website, to brand, in order to trick investors into thinking that they are the actual legitimate firm.
As pointed out by the watchdog, anyone who engages in securities fraud or pretends to be a capital market intermediary or provides any regulated activities without a valid license or registration from the SC is committing an offense under the Capital Markets and Services Act 2007. If convicted, they may be punished with imprisonment of up to ten years and fined.
“The SC reminds investors to always exercise due caution when considering investment opportunities, especially those promising extremely high returns with little or no risks. Investors are also encouraged to verify the status of individuals or companies offering investing opportunities via the SC website,” the regulator said in its statement this Friday.
Fraudsters use COVID-19 to scam victims
Across the world, regulators have their work cut out for them dealing with financial scams, which have only become more prevalent during COVID-19. As Finance Magnates reported, the Investment Association (IA) warned that evidence suggested that some scammers are attempting to use the pandemic to convince savers and investors to withdraw money from their investments.
Investment management firms have seen a noted increase in this criminal activity, previously focused on retail banking customers, the IA said.
Clone
Clone
A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for greater transparency, registers, and authorization, fraudsters have resorted to clone attempts to try to dupe investors.Fraudsters are constantly looking for new ways to scam consumers, but one technique that has been increasingly reported to regulators has been clones.This is a particular issue in the United Kingdom, with the Financial Conduct Authority (FCA) taking measures to crack down on clone firms.These scammers typically cold-call investors to promote shares, property or other investment opportunities that are non-tradable, worthless, overpriced, or even non-existent.How Do Clone Scams Work?In most jurisdictions, firms need to be authorized to sell, promote, or advise on the sale of shares and other investments.Some fraudsters simply claim to represent these authorized firms, or even try to change firms’ contact details on registers to look authentic.The scammers will then give their own phone number, address, and website details to possible victims.Most commonly, scammers claim to be from overseas firms that appear on the registers as these firms do not always have their full contact and website details listed.These entities may even copy the website of an authorized firm, making small tweaks or changes such as to the phone number listed.
A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for greater transparency, registers, and authorization, fraudsters have resorted to clone attempts to try to dupe investors.Fraudsters are constantly looking for new ways to scam consumers, but one technique that has been increasingly reported to regulators has been clones.This is a particular issue in the United Kingdom, with the Financial Conduct Authority (FCA) taking measures to crack down on clone firms.These scammers typically cold-call investors to promote shares, property or other investment opportunities that are non-tradable, worthless, overpriced, or even non-existent.How Do Clone Scams Work?In most jurisdictions, firms need to be authorized to sell, promote, or advise on the sale of shares and other investments.Some fraudsters simply claim to represent these authorized firms, or even try to change firms’ contact details on registers to look authentic.The scammers will then give their own phone number, address, and website details to possible victims.Most commonly, scammers claim to be from overseas firms that appear on the registers as these firms do not always have their full contact and website details listed.These entities may even copy the website of an authorized firm, making small tweaks or changes such as to the phone number listed.
Read this Term scams are on the rise, the Securities Commission Malaysia (SC) warned to the investing public this Friday, stating that there is an increasing amount of fraudsters trying to trick investors via clone firms.
In particular, the regulator warned that a number of capital market licensed entities had lodged reports with the Securities Commission of Malaysia, claiming that their corporate identities have been cloned by unknown persons or organizations.
As the name suggests, clone firms are fraudulent entities that copy details of a legitimate firm, such as their name, website, address, registration details, etc. Some even go to the lengths of completely copying a firm – from their website, to brand, in order to trick investors into thinking that they are the actual legitimate firm.
As pointed out by the watchdog, anyone who engages in securities fraud or pretends to be a capital market intermediary or provides any regulated activities without a valid license or registration from the SC is committing an offense under the Capital Markets and Services Act 2007. If convicted, they may be punished with imprisonment of up to ten years and fined.
“The SC reminds investors to always exercise due caution when considering investment opportunities, especially those promising extremely high returns with little or no risks. Investors are also encouraged to verify the status of individuals or companies offering investing opportunities via the SC website,” the regulator said in its statement this Friday.
Fraudsters use COVID-19 to scam victims
Across the world, regulators have their work cut out for them dealing with financial scams, which have only become more prevalent during COVID-19. As Finance Magnates reported, the Investment Association (IA) warned that evidence suggested that some scammers are attempting to use the pandemic to convince savers and investors to withdraw money from their investments.
Investment management firms have seen a noted increase in this criminal activity, previously focused on retail banking customers, the IA said.
