Investment-related complaints account for less than 1% of total in 2016 – CSN data

Maria Nikolova

Complaints related to stocks/commodity futures trading account for meager 0.03% of the total last year, data from the Consumer Sentinel Network shows.

Investment-related complaints accounted for humble 0.71% of the total of 3,050,374 complaints reported to the United States Federal Trade Commission’s Consumer Sentinel Network in 2016. The data comes from the agency’s new Data Book, covering the last calendar year (January 2016 – December 2016).

Investment-related complaints refer to (inter alia) investment opportunities in day trading; gold and gems; art; rare coins; other investment products; as well as complaints about companies that offer advice or seminars on investments; etc. Consumers filed 21,604 complaints related to investment products and services last year. Out of these, only 933 related to stocks/commodity futures trading, a fall from such 1,224 complaints submitted in 2015.

Looking at the overall data, let’s note that nearly 1.3 million complaints were fraud-related. Consumers reported paying more than $744 million in those fraud complaints, with the median amount paid being $450.

In total, the CSN received over 3 million complaints (excluding do-not-call) during calendar year 2016: 42% fraud complaints; 13% identity theft complaints; and 45% other types of complaints.

The small percentage of investment-related complaints as displayed by the CSN report echoes similar numbers reported in other jurisdictions. In France, for instance, the Activities Report for 2016 issued by the General Directorate for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) has shown that the agency received 69,153 claims against various businesses in 2016, with a meager 3% of these concerning banking and finance. Nearly all other industries were targeted by more complaints. The French are complaining about food quality, electrical appliances, cars, property, but finance-related complaints are rare.

Talking of complaints data for 2016, let’s also mention that the UK Financial Conduct Authority (FCA) has recently published some fresh data from its Consumer Contact Center, with the report showing that binary options were the kind of investment products that registered the highest growth in enquiries for the period from December 1, 2015 to November 30, 2016. Over 13,100 enquiries (14% of total) related to investment products and binary options accounted for 17% of enquiries within investment products. Other product types where the Contact Center that accounted for a lot of the enquiries are shares (14%), Forex (13%) and bonds (10%).

Read this next

Digital Assets

SIX integrates CryptoCompare’s cryptocurrency data feed

SIX will provide digital asset data to its clients via the same delivery channels as its leading reference, pricing, corporate actions, regulatory, tax and ESG data.

Digital Assets

CME Group to launch reference rates and indices on Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ)

Several leading crypto exchanges and trading platforms will provide pricing data for these new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.


OneConnect launches operation in ADGM further expanding in Middle East

OneConnect has launched its regional operations in Abu Dhabi Global Market (ADGM), the leading international financial centre of the capital of the UAE, after having worked together on the creation of the ADGM Digital Lab which was launched in April 2021. The ADGM Digital Lab is a marketplace and industry sandbox to encourage the development […]

Industry News

Bitso powers crypto into Via’s payroll platform as remote work triples by 2027

“We are also allowing companies to hire international talent without worrying about administrative issues.”

Retail FX

Vantage partners with FinaCom for external dispute resolution and up to €20,000 protection per client

Vantage has joined the Financial Commission (FinaCom) as a member, thus gaining access to the external dispute resolution body’s range of services and membership benefits, including the unbiased resolution process facilitated by FinaCom, and the protection of up to €20,000 per client, covered by the FinaCom’s compensation fund.

Digital Assets

LMAX Digital onboards Bryan Christian and Cassandra Cox to lead sales

Institutional cryptocurrency exchange LMAX Digital continues to undergo a series of changes in its top ranks as it continues to build its presence globally. Two industry veterans, Bryan Christian and Cassandra Cox, have joined the group as its newest sales directors in Europe and USA.

Digital Assets

Cake DeFi introduces Ethereum Staking with 5% returns

Cake DeFi, a Singapore-based DeFi platform, is launching its Ethereum (ETH) staking service for retail and institutional customers.

Retail FX

FX trading rebounds 405pct at Saxo Bank in September

In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded strongly in September to the highest level in three months.

Retail FX

CMC Markets’ stock climbs as H1 revenue to climb +20%

CMC Markets PLC (LSE:CMCX) shares spiked 5.6 percent to 235p in Thursday’s trading after the firm’s trading update for the first half of its fiscal year 2023 revealed results at the high end of company projections.