The UK Investment Association (IA) has issued a warning about the rapid increase in ´cloning scams´, where fraudsters create nearly identical copies of legitimate websites, emails, or social media accounts to deceive consumers into transferring funds. According to the association´s latest report, the latter half of last year saw 478 incidents of investment management firms being impersonated, with 23% of these schemes succeeding and resulting in consumer losses totaling £2.7 million.
The IA emphasized the evolving tactics of cybercriminals, highlighting that perpetrators are increasingly using advanced technologies to improve the sophistication and realism of their fraudulent attempts. Adrian Hood, the IA´s regulatory and financial crime expert, urged consumers to be vigilant, verify the legitimacy of financial communications, and remain cautious about sharing personal information or sending money in response to digital solicitations. He specifically noted the growing role of artificial intelligence in enabling criminals to more convincingly mimic authentic brands and representatives.
The IA´s concerns are supported by broader cybersecurity research. PYMNTS Intelligence reports that 90% of US firms were targeted by cyberfraud in 2024, with business email compromise attacks rising dramatically from the previous year. Notably, the article cites a case in Hong Kong where a finance worker was tricked into sending millions of dollars following a deepfake video call with individuals impersonating company executives, underscoring how generative artificial intelligence can be used to facilitate convincing scams.
In addition to cloning scams, the IA highlighted risks from card fraud—where false or stolen card details are used to make investments—and account takeover scams, in which criminals gain access to accounts to alter details and withdraw funds. The report counted 17 cases of card fraud and 132 account takeovers in the second half of 2024 alone. The IA urges both consumers and businesses to take proactive measures against increasingly sophisticated threats as financial fraud continues to evolve alongside advances in artificial intelligence technology.
