The explosive growth of family offices worldwide has spawned an unsettling trend: a rising number of imposters posing as representatives of these private wealth managers to defraud investors or gain social status. As the ultra-wealthy population expands, so too does the allure of exploiting the opaque, unregulated nature of the sector.

“Fake family offices have been growing exponentially,” said Ronald Diamond of Diamond Wealth, who co-invests with over 100 families. “Right now, the family office space is where all the money is. So if you say you have a family office, everybody wants to talk to you.”

A Spectrum of Deception

Imposters range from outright fraudsters to social climbers. In one high-profile Singapore case, a resident impersonated executives of the prominent Man Capital family office, using fake email domains to dupe victims into a $10 million pre-IPO investment scam. Others, however, seek only an “ego boost,” noted Tobias Prestel of Prestel and Partner: “If you say, ‘I’m a family office,’ then banks invite you for lunch and asset managers take you out for dinner.”

Genuine single-family offices manage only their own family’s wealth and do not raise funds or sell investments to the public. Yet their regulatory exemption—in jurisdictions like the U.S., Dubai, and Singapore—makes verification difficult, creating an information vacuum that imposters exploit.

An Industry Built on Privacy and Trust

The family office sector is booming. Deloitte estimates there were 8,030 single-family offices globally in 2024, a 31% increase over five years, collectively managing about $3.1 trillion. By 2030, assets could reach $5.4 trillion. This growth, coupled with the sector’s inherent privacy, has made it a target for financial impersonation.

Industry insiders rely heavily on community vetting. “It’s hard to do background checks on billionaires,” Diamond admitted. Instead, networks compare notes through referrals, associations, and even WhatsApp groups. “If I’ve not heard of this family office and they claim to have been in Singapore for 30 years, then something is wrong,” said Ryan Lin of Bayfront Law.

Red Flags and Due Diligence

Experts warn that overcompensatory behavior—such as unsolicited lengthy bios or product pitches—should raise alarms. “Genuine family offices have people come after them a lot,” noted Mu Chen of Canopy. Authentic offices rarely lead with investment offers or aggressively prove their legitimacy.

To avoid scams, investors are advised to:

• Verify licensing status (entities soliciting third-party funds typically require a license).

• Request references from established families or industry associations.

• Examine past investments and co-investment partners.

• Question the source of wealth and seek independent confirmation.

As the sector expands, so does the need for investor vigilance. While family offices remain a pillar of private wealth management, their very exclusivity has made them a magnet for those looking to profit—or simply posture—in the shadows.