A global wealth boom is fueling the creation of a record number of family offices. And that has come with a peculiar problem: imposters. Fundraisers and fraudsters are presenting themselves as family office representatives, seeking to dupe gullible investors — and then there are also imposters who are in it just for an “ego boost,” several industry veterans told CNBC. “Fake family offices have been growing exponentially,” said Ronald Diamond, who runs Diamond Wealth and a co-investment syndicate of more than 100 families. “Right now, the family office space is where all the money is. So everyone, every bank, every law firm, every accountant firm, wants some [of that money]. So if you say you have a family office, everybody wants to talk to you,” he said. Last year, a Singapore resident was found guilty for masquerading as a representative of a prominent family office and running a $10 million scheme that duped people into investing in pre-IPO tech companies such as Airbnb . He impersonated Man Capital executives by creating fake email domains and online profiles, pretending to have ties to one of Egypt’s most prominent business families, lulling his victims into a false sense of security before defrauding them. Some people don’t do it for the money, but for their self esteem and self worth. They think if a bank takes them out for lunch and people court them, it means they’re loved. Prestel and Partner Family Office Conferences Tobias Prestel Genuine family offices largely do not raise money from the public or sell investment products, they only manage and invest their own family’s wealth, said experts. Not every imposter is looking to make a quick buck though. There are those who put on a charade not to defraud others, but to be recognized as important members of the society. They pretend to be a family office in order to gain a certain social status and respect. “So they say, oh I’m the founder of a family office, just to hang with a crowd and be somebody,” said Tobias Prestel, managing director at Prestel and Partner Family Office Conferences. “If you say, I’m a family office, then banks invite you for lunch and asset managers take you out for dinner, and everybody who wants to sell you something treats you nicely.” Industry experts said the rise in fakes is a natural by-product of money and attention flooding into the space. According to Deloitte’s most recent statistics, there were an estimated 8,030 single family offices worldwide as of 2024, up almost 31% over the last five years. The number is projected to rise by 12% to 9,030 by the end of 2025, and by 33% to 10,720 by 2030. Collectively, the funds they oversee are enormous — and continue to increase. In aggregate, family offices now manage about $3.1 trillion in assets under management and are expected to grow 73% to $5.4 trillion by 2030. Why fakes — and how to spot them An information vacuum seems to have encouraged imposters. In many markets, genuine single family offices, or SFOs, are exempt from registering — they do not need to be on a public regulatory register or need a license for fund management — so long as they manage only family money. That privacy norm often makes verification hard, said industry experts. For example, in Dubai, SFOs don’t need a full financial license as long as they only manage money for one family. Similarly, family offices in the U.S. are usually exempt from registering with the Securities and Exchange Commission if they serve only one family and are wholly owned and controlled by family members. Single Family Offices are set up to manage family monies and should not be soliciting third party monies. Monetary Authority of Singapore “Investors should understand more about the background of their investment partners before committing to any investment,” said a spokesperson for Hong Kong’s Financial Services and Treasury Bureau, adding that the public can contact the SFC should there be any enquiries about the background of a family office. The Monetary Authority of Singapore said that parties who are approached by entities soliciting for funds should verify their identities and whether or not they hold the appropriate license. “Single Family Offices are set up to manage family monies and should not be soliciting third party monies. Any entity that solicits third party funds are required to hold a capital markets services license,” an MAS spokesperson told CNBC. When asked about what steps the country had taken to prevent family office-related frauds, the UK’s Financial Conduct Authority said that it continues to “work with partners to disrupt crime, including scams and illegal financial promotions.” The Dubai Financial Services Authority declined to comment, while the U.S. Securities and Exchange Commission, largely closed due to a government shutdown, did not respond. It also does not help that some wealthy individuals are generally very private, and have little to no information that can be accessed online. Diamond underscores the practical challenge: “It’s hard to do background checks on billionaires, right? Because they are so usually so private.” As such, family offices are increasingly relying on each other to compare notes. The industry vets one another through community references and proof of behavior. That is something investors too can try before putting money into any schemes suggested by some family office representative. Diamond said the fastest filter for him is to call a few established families within the geography and inquire. If no one has heard of them, that could be a potential red flag, warranting deeper research. Similarly, Ryan Lin from Bayfront Law, who liaises with Chinese family offices in Singapore, pointed to a strong family office association in the city-state, saying that representatives at times conduct checks through a WhatsApp group. “I mean, if I’ve not heard of this [family office] and they claim that they have been in Singapore for 30 years, then something is wrong,” he said. The alarm bells would be if someone comes up to me and goes: ‘hey, I’m a wealthy second generation from a family in Singapore.’ Then proceed to send me a brief of 400 to 500 words trying to prove this. CEO of Canopy Mu Chen Industry veterans suggested seeking information on past investments, co-investment partners, as well as trying to verify the source of wealth can help ascertain the genuineness of purported family offices. Overcompensatory behavior to prove legitimacy tends to raise alarm bells, too. Mu Chen, CEO of Canopy, who liaises with family offices setting up in Singapore, said that family offices generally do not tend to share too much information, and rarely lead with a product push — these people get courted often, and its’s not the other way around. “Genuine family offices have people come after them a lot,” he said. “The alarm bells would be [ringing] if someone comes up to me and goes: ‘hey, I’m a wealthy second generation from a family in Singapore.’ Then proceed to send me a brief of 400 to 500 words trying to prove this.”