Fake savings bonds: investment scams took £221.5m last year. How to spot a clone firm
With Bank Rate at 4%, savers are hunting for better fixed rates, and scammers are copying real savings firms to catch them. The FCA warned about a fake Bondsmith on 27 October. Here's how clone firms work and how to check before you pay.
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Investment scams cost UK victims £221.5 million in 2025, up 40% on the year before, according to UK Finance. That was 38% of all money lost to scams where people were tricked into sending a bank transfer. One common version right now is the fake savings bond. With Bank Rate at 4%, savers are looking for a better fixed rate, and criminals are pretending to be real, regulated savings firms to catch them.
What's happened
On 27 October 2026 the Financial Conduct Authority (FCA) warned about "Bondsterling Savings Ltd", a clone of Bondsmith Savings Ltd, a genuine FCA-authorised firm. The fake uses the website bondsterling.co.uk. On 20 August the FCA had already warned about another clone of the same firm, using bondsmith.uk, savings.bondsmith.uk and bondsmiths.co.uk, a London address at 124-128 City Rd, and the phone number 02080730879.
The real Bondsmith's website is bondsmith.com. The FCA says the genuine firm "has no connection with the clone firm".
How a clone firm works
The FCA says clone firms use the name and address of a genuine firm, or copy its firm reference number (FRN). They may copy the real firm's website with small changes, or use email addresses that look like the real thing. They often change their details over time.
It might go like this: you search for "best fixed rate bond", fill in a comparison form, or get a call or email out of the blue. The "adviser" offers a rate a little above the best-buy tables, sends a smart brochure with a real FRN on it, and asks you to transfer money to "the bank's client account".
Dealing with a clone means you can't use the Financial Ombudsman Service, and you have no FSCS protection. The FCA says you're unlikely to get your money back that way.
A worked example
The Bank of England's figures show new fixed-term savings paid 4.42% on average in September 2026. Say you're offered 6% on a one-year bond. On £20,000, that's £1,200 of interest, against about £884 at 4.42%. The extra £316 is the bait. If it's a clone, you lose the whole £20,000.
The bank-transfer refund rules can help. Since 7 October 2024, banks must refund most victims of these scams, up to £85,000 per claim, if you claim within 13 months. But UK Finance's figures show only £106.5 million of the £221.5 million lost to investment scams in 2025 was returned. Not being caught is far better than claiming.
How to spot one
The FCA's ScamSmart warning signs include:
- Contact out of the blue, by phone, email, text, post or social media.
- Pressure to act fast, such as a bonus for investing quickly or a rate that's "only available today".
- Returns that look too good to be true.
- Being told you've been specially chosen, and to keep it quiet.
- Claims to be authorised, backed up with confident jargon.
Add two more for savings bonds: a web address that's slightly different from the real one, and being asked to pay a named person or an unfamiliar account rather than the bank itself.
What to do now
- Start from the FCA Firm Checker. Search the firm at fca.org.uk/consumers/fca-firm-checker, typing the address yourself.
- Check the contact details match. The FRN, phone number, email and website should all match the Register. If not, call the FCA on 0800 111 6768.
- Check the FCA Warning List. It lists clone and unauthorised firms. The FCA says it updates the Firm Checker and Register on average every 24 hours.
- Open accounts directly. Go to the bank's own website or app, or a savings platform you've checked, rather than an adviser who called you.
- Know your protection. At a real bank or building society, the FSCS protects up to £120,000 per person per authorised firm.
If you've been caught
Call your bank straight away on the number on the back of your card, and ask about the refund rules. Then report it to Report Fraud at reportfraud.police.uk or on 0300 123 2040 (in Scotland, Police Scotland on 101). Report the clone to the FCA on 0800 111 6768.
Questions
Is Bondsmith itself a scam? No. Bondsmith Savings Ltd is FCA-authorised. The warnings are about fakes copying it.
Is a "savings bond" from a comparison site safe? Many are genuine, but check the provider on the Firm Checker and open the account on its own site.
What about scam texts and emails? Forward texts to 7726 and emails to [email protected].
Stay safe online
A password manager such as NordPass makes it easier to use a strong, different password for your banking and email. See our guide to who has passed on the rate rise to find a real home for your savings, and our warning on scam calls from real-looking numbers.
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Sources: FCA, Bondsterling Savings Ltd warning, 27 Oct 2026, FCA, bondsmith.uk warning, 20 Aug 2026, FCA, clone firms, 8 Nov 2026, FCA, ScamSmart, 8 Nov 2026, UK Finance, Annual Fraud Report 2026, 15 Jun 2026, Bank of England, Effective interest rates, September 2026, Payment Systems Regulator, reimbursement, 8 Nov 2026, Bank of England, FSCS limit, Nov 2025
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