Fca’S sCAMSMART
Unfortunately UK customers are more and more the target of investment scams, often carried out via online trading platforms or other digital routes of access.
It is important to work with a trusted Adviser where possible, and if joining or trading with financial instruments alone, be certain that the opportunity is real before taking action. This is especially important in areas such as foreign exchange, contracts for difference or cryptoassets such as bitcoin or other digital currencies.
If you have any concerns, use the Financial Conduct Authority’s ScamSmart tools along with the following steps published by the FCA.
To avoid these, use the following list of steps:
Be wary of adverts online and on social media promising high returns from investing online.
Always be wary if you are contacted out of the blue, pressured to invest quickly or promised returns that sound too good to be true.
Always do your own further research on the product you are considering and the firm you are considering investing with.
Check the FCA register of authorised firms. If you use an unauthorised firm, you won’t have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS), so you’re unlikely to get your money back if things go wrong. However, not all investments are regulated by the FCA. For example, the FCA doesn’t regulate most cryptoassets, but they do regulate certain cryptoasset derivatives (such as futures contracts, CFDs and options). Read more about cryptoassets and forex scams.
Check they are not a clone – a common scam is to pretend to be a genuine FCA-authorised firm (called a ‘clone firm’). Always use the contact details on the FCA Register, not the details the firm gives you.
Check the FCA Warning List – use this tool to check the risks of a potential pension or investment opportunity. You can also search to see if the firm is known to be operating without FCA authorisation.
Check with Companies House to see if the firm is registered as a UK company and for directors' names. To see if others have posted any concerns, search online for the firm's name, directors' names and the product you are considering.
Seriously consider getting independent financial advice or guidance before investing. You should make sure that any firm you deal with is regulated by the FCA and never take investment advice from the company that contacted you, as this may be part of the scam.
Don’t give access to your device by downloading software or an app from a source you don’t trust. Scammers may be able to view, take control of your device and access your bank account.
If you have been scammed:
You can report the firm or scam to the FCA by contacting the FCA Consumer Helpline on 0800 111 6768 or using the reporting form.
If you have already invested in a scam, fraudsters are likely to target you again or sell your details to other criminals.
The follow-up scam may be completely separate or related to the previous fraud, such as an offer to get your money back or to buy back the investment after you pay a fee.
If you have any concerns at all about a potential scam, contact the FCA immediately.
If you’re suspicious, report it
You can report the firm or scam to the FCA by contacting the FCA Consumer Helpline on 0800 111 6768 or using the reporting form.
If you’ve given your bank account details to a firm you think may be operating a scam, tell your bank immediately.
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