02 Nov 2017
Targeted by investment scammers? Here's what to do...
The Financial Conduct Authority is urging the public to get in touch if they have heard from a company offering a possible fraudulent investment.
This plea from the regulator comes as new research shows more than a fifth of over-55s surveyed who suspected they had been contacted about a scam in the last three years did not tell anyone about it. The most common reason given for not reporting was not knowing who to tell (49%).
Encouragingly, 63% say they would report a suspected fraudulent investment to an organisation, such as trading standards or the police. However, this is still significantly lower than those who would report spilled liquids in a supermarket (84%) or fly tipping in their local area (81%).
Mark Steward, director of enforcement at the FCA, said: “We want to say thank you to everyone who is coming forward to help us crack down on investment scams. It’s clear to see that, by reporting suspicious investment schemes to the FCA, people are having a direct impact in helping to stop fraudsters exploiting others. But there is still more we can all do and we need the public’s help.
"We are encouraging people to speak out on behalf of their family or local community, just like they would report a crime in their local area.”
What to look out for
To avoid being a victim of investment fraud, the regulator advises consumers to, at the very least:
- Reject unsolicited contact about investments.
- Before investing, check the FCA Register to see if the firm or individual you are dealing with is authorised and check the FCA Warning List of firms to avoid.
- Get impartial advice before investing.
Last year alone, the regulator received more than 8,000 reports of potential scams.
These reports to the FCA help protect consumers from firms operating fraudulent schemes. The regulator publishes warnings about potentially fraudulent firms which are added to the FCA Warning List, an online tool that helps investors check a list of firms operating without authorisation and find out more about the risks associated with an investment. This list currently contains details of nearly 4,000 companies to avoid.
The regulator also takes civil court action to stop illegal activity and, for the most serious cases, pursues criminal prosecution. Last year, the FCA returned more than £3million to victims of unauthorised activity, including investment fraud.
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