Identifying Cloned Financial Services and Unauthorised Digital Asset Brokers
Unauthorised entities frequently clone legitimate financial institutions to persuade investors to transfer digital assets into private custody. Verifying firm credentials independently and examining recipient addresses helps individuals detect deception before capital is committed.
- Always check the Financial Conduct Authority register using independent search tools rather than clicking links provided by an operative, verifying that firm reference numbers and official contact details match exactly.
- Be alert if an intermediary insists on receiving payments in digital assets while claiming affiliation with a traditional wealth management firm or authorised banking institution that does not offer onchain custody.
- Cross-reference inbound deposit addresses across public transaction explorers to determine whether transfers are moving directly into an institutional pool or being diverted into newly created personal unhosted wallets.
- Notify your domestic bank immediately if any fiat currency was transferred to purchase digital assets intended for an unverified entity, enabling their fraud team to record the destination and review potential recall avenues.
Written by the Wallsec investigations team. General information only, not legal or financial advice.
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