Using funds recovered from the proceeds of crime, the Financial Conduct Authority (FCA) has launched a national campaign to warn people about fraud.

Investment scams generally involve high-pressured selling, using boiler room tactics, for products which often do not exist, including land-banking schemes.

Martin Wheatley, Chief Executive of the FCA says:“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.”

The average investor loses around £20,000 and the FCA receives around 5,000 calls a year from investors about suspected investment fraud.

Investment scams are difficult to spot and are designed to look like genuine investments. The FCA has seen examples of fraudulent websites that mimic those of legitimate firms and investment brochures that would be likely to convince even an experienced investor that the product was genuine.


The FCA’s ‘Scamsmart’ website, www.fca.org.uk/scamsmart can be  visited for more information. 

Key signs of a possible investment scam:

Unexpected contact and insistent contact

Pressured to enter an agreement which is on a time-limited offer.

The risks to the money are downplayed or legal jargon is used to suggest the investment is very safe.

The returns sound too good to be true, for example, better interest rates than those offered elsewhere

In the last year, the FCA processed 6,593 reports of suspected unauthorised activity, issued 295 consumer warnings and secured the removal of 61 websites promoting suspected boiler rooms. The FCA has also secured criminal convictions against four individuals who were involved in unauthorised activity, including running fraudulent investment schemes. It has also taken eight civil injunctions this year.