Trading Standards Scam Warnings - Investment Scams

13th April 2023

Three people have this week been convicted for investment fraud, after scamming over £1.2 million from around 120 UK investors.
They made cold calls to members of the public, using pseudonyms, to convince them to invest with a fake company.

The fraudsters claimed to trade their clients' money, when in reality they used the money to fund their lifestyles. To encourage people to invest, they offered to match investments with their own funds and refund losses in the first 3-6 months. The investors had access to a sophisticated online platform that appeared to show their funds being traded, however, this was manipulated to show trading activity when there was none.

How to Avoid

The Financial Conduct Authority (FCA) warn that, if you are contacted out of the blue about an investment opportunity, the chances are it’s a high-risk investment or a scam.

Before making an investment, check that the company is regulated by the FCA at register.fca.org.uk/s/

Don't be rushed into making a decision about an investment - seek advice from someone you trust or from a financial advisor accredited by the FCA

You can also check the FCA's warning list of firms they know to be operating without permission or running scams. If a firm appear on this list it is because the FCA has identified that they are operating without their authorisation:
www.fca.org.uk/scamsmart/warning-list

Contact your bank immediately if you think you may have made a payment to a scammer or if you are worried that a fraudulent transaction has been made from your account.

Find out more
FCA ScamSmart website - advice on spotting and avoiding investment scams: www.fca.org.uk/scamsmart
FCA Financial Services Register: register.fca.org.uk/s
Which? guidance on investment scams: www.which.co.uk/consumer-rights/advice/how-to-spot-an-investment-scam

Original article: www.fca.org.uk/news/press-releases/three-individuals-convicted-and-sentenced-combined-24-and-half-years-all-or-nothing-investment-fraud