FCA advises those affected by investment scams to speak up

Maria Nikolova

The call comes after a survey among Britons aged above 55 years showed they are more likely to report accidents with spilled liquids in the supermarket than a suspected investment fraud.

The UK Financial Conduct Authority (FCA) today turned to the public asking people not to stay silent about investment scams.

This plea comes as new research conducted by YouGov shows 22% of over 55s surveyed who suspect they have been contacted about a fraudulent investment in the last three years, did not report about it. The most common reason cited for not reporting was not knowing who to report to (49%).

Although 63% say they would report a suspected investment scam to an organisation, this percentage is significantly lower than that of those who would report spilled liquids in a supermarket (84%) or fly tipping in their local area (81%).

Last year the FCA received more than 8,000 reports of potential scams, with residents of London being the most active in reporting, followed by those from Birmingham, Belfast and Guildford. This supports the findings from the research, which shows that Londoners (42%) are the most likely to report suspected investment scams to the FCA, compared to other regions.

The FCA notes that such reports help its action to protect consumers from firms operating fraudulent schemes. The FCA Warning List, an online tool that helps investors check a list of firms operating without authorisation, currently contains details of nearly 4,000 firms to avoid. The FCA may also take civil court action to halt illegal activity and for the most serious cases, pursues criminal prosecution. Last year, the FCA returned over £3 million to victims of unauthorised activity, including investment fraud.

In light of this new research, the FCA is calling for more consumers to report suspected investment scams, recognising that there are more bogus firms out there that are yet to be identified.

Last week, the City of London Police today reported that it had conducted a day of action on October 17, 2017. The action consisted of visiting 20 offices with the City of London Corporation’s Trading Standards. In co-operation with the Financial Conduct Authority (FCA) and the HM Revenue & Customs (HMRC), the Police were able to gather intelligence on different types of investment fraud and, in particular, binary options fraud. A total of 2,065 people have reported being a victim of binary options fraud to Action Fraud since 2012, with the amount lost exceeding £59 million.

Read this next

Retail FX

Investors from Cyprus and Dubai acquire ‘significant stake’ in M4Markets

Seychelles-regulated brokerage firm M4Markets firm has picked up some investment from Cyprus and Dubai based investors in a new funding round that it will be using to grow its business.

Executive Moves

UAE broker Amana elevates Amr Masry to sales director

Amr Masry has been promoted to a new senior role at Amana Capital, becoming the group’s newest Sales Director, following a successful tenure with the UAE-based FX and CFDs broker.

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

<