Fake Broker Scams
Impersonation of regulated brokers, or entirely invented firms, to take deposits for trading or investing.
Last reviewed: 1 June 2026
What this scam is
A fake broker scam involves a firm that is either entirely fabricated or impersonating a real, regulated broker (a 'clone firm'). It collects deposits for investments that don't exist or can't be withdrawn.
How it works
You find the broker through an ad, cold call, or comparison site. Clone firms copy a real broker's name, logo and registration number. You deposit, see 'gains', and then face blocked withdrawals and fee demands.
Common red flags
- Contact details that differ from those on the regulator's register
- Pressure to deposit quickly
- A website that closely copies a known broker
- Withdrawals blocked behind fees
Sanitized example messages
Illustrative, sanitized examples. Personal details are replaced with placeholders such as [phone number] and [fake link].
We're [well-known broker], FCA registered. Open an account today and deposit via this link: [fake link].
Payment methods used
- Cryptocurrency
- Bank/wire transfer
- Gift cards
- Money transfer services
- Payment apps to 'friends & family'
Who is usually targeted
- Investors comparing brokers
- People responding to ads
What to do immediately
- Verify the firm directly on your regulator's register using the regulator's own contact details
- Stop depositing and contact your bank
- Report the clone firm to your regulator and fraud service
Evidence to preserve
- The website URL
- Registration numbers quoted
- Payment records
Where to report it
- Action Fraud (UK) — UK national fraud & cybercrime reporting centre
- FTC ReportFraud (US) — US Federal Trade Commission fraud reports
- FBI IC3 (US) — US Internet Crime Complaint Center
- Scamwatch (Australia) — Australian competition & consumer reporting
- Your national financial regulator — Report clone firms so they can issue warnings
Always verify reporting routes and emergency contacts on the official government or agency website for your country.
Frequently asked questions
What is a clone firm?
A clone firm impersonates a genuine regulated company, copying its name and registration number but using its own (fake) contact details. Always confirm contact details via the regulator's official register.