Fund Management

FCA Launches New Investment Fraud Campaign

Mark Shapland, Reporter, London, 16 October 2014

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The Financial Conduct Authority (FCA) has launched a national campaign to warn people about investment fraud and how to spot a potential scam.

The Financial Conduct Authority (FCA) has launched a national campaign to warn people about investment fraud and how to spot a potential scam.

The regulator said even experienced investors can be caught out by conmen using boiler room tactics for products which often do not exist, including land-banking schemes, carbon credits and rare earth metals.

“Those operating investment scams use very sophisticated techniques to build trust and can dupe even experienced investors out of their savings.  With large numbers of people at risk, it’s important to know how to spot the signs of a potential scam. We would caution against anyone taking a risk on a firm or individual who isn’t authorised by the FCA. Our message is simple, don’t accept a cold call,” said Martin Wheatley, chief executive of the FCA.

The average investor loses around £20,000 ($32,000)  a year from fraud. Those most at risk of investment fraud are people in retirement, the body added.

The regulator is using funds recovered from the proceeds of crime to fund the campaign. In the last year, the FCA processed 6,593 reports of suspected unauthorised activity.

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