Clones that steal legit financial firms identities are one of the most sophisticated and damaging tactics in the world of fraud. Cloning involves the wholesale theft of a legitimate company’s identity to create a “perfect” digital replica.

By the time a victim realizes he or she is not  dealing with the real firm, their money is often long gone. Here is how these bad actors pull off the heist.

1. Identifying the Target

Fraudsters don’t pick targets at random. They typically look for legitimate, mid-sized investment firms or brokerage houses that are registered with national regulators (such as the SEC in the United States or the FCA in the United Kingdom).

They favor firms that have a solid reputation but might not have a massive, 24/7 social media presence that could quickly debunk a fake site.

2. Scraping the Assets

Once a target is selected, the “cloning” begins. Fraudsters use automated tools to scrape the legitimate firm’s website. This includes:

• Corporate Logos and Branding: Using the exact color palettes and high-resolution logos.

• Legal Disclaimers: Copying the “Fine Print” word-for-word to build trust.

• Registration Numbers: They explicitly list the real firm’s CRD (Central Registration Depository) or Firm Reference Number (FRN) to prove they are “regulated.”

3. The “Look-Alike” Domain

The most critical step is the URL. Fraudsters register domains that are nearly identical to the real one, often using Typosquatting or Combosquatting. Instead of actual links, they rely on the visual similarity of the text.

Awareness is your strongest defense.   

Contact us if you’d like more information on how cyber intelligence can help you locate scammers. 

Please share this guide with friends and colleagues.