UK’s Financial Conduct Authority (FCA) alerted the public that an entity is cloning the US-based Bank of America. The regulator noted that the clone firm is using a domain dubbed boa-eu.com to arrange contact bridges and claimed to their targets that they are representatives of the US bank.
The British financial authority warned that the entities who claim to work with the bank or represent the bank have no association with the Bank of England.
In some cases, fraudsters use a clone firm to get the details of users of the original company. Once they have succeeded in collecting vital details from the target, they can use the information for phishing attacks.
Investors With Unregistered Firms Are Not Protected
The FCA stated that the firm is not regulated in the UK but has been targeting people, claiming to be authorized to do business in the country.
Additionally, the regulator stated that those dealing with authorized firms in the UK are allowed to access the Financial Services Compensation Scheme and the Financial Ombudsman Service, depending on the investment made. This means that investors are protected in case something goes wrong with their investments only when the affected company is authorized to operate by the regulator.
The watchdog also warned people that carrying out businesses with clone companies exposes them to financial fraud.
The FCA Uncovers More Clone Companies
In September, the FCA issued an advisory about a fake firm cloning US-based banking group Wells Fargo. Based on the advisory, the fake entities are utilizing the real details of the main company to scam people in the UK. The fraudsters used a domain name called wf-europe.com with a fake address that doesn’t correspond to the official address of Wells Fargo Securities International Limited. The FCA said these fraudsters send unsolicited emails to the targeted victims to deceive them into releasing important personal details.
The regulator also advised people to only deal with financial firms that are authorized to do business in the country. They should also verify with the Financial Services (FS) registrar to make sure the firms are duly registered.
The FCA says it should be contacted if a company claims to be registered by does not appear on the FS.