People are being warned to watch out for investment scams after a regulator said it had seen an increase in inquiries. Between April and September last year, the Financial Conduct Authority (FCA) was contacted by 16,400 people about possible scams, up nearly a third from the same period in 2020.
Cryptoasset cons were among the top scams reported, with some scammers also impersonating the FCA. Boiler room scams were also common. These involve frauds being run out of offices known as boiler rooms and criminals contact people out of the blue and convince them to invest in schemes or products that are worthless or do not exist.
The FCA also said it was taking assertive action in the consumer investment market and had stopped around one in four firms wanting to join from entering it. The regulator's ScamSmart campaign encourages those considering investing to check its dedicated website.
The site features an online tool, and a "warning list". The FCA's InvestSmart campaign launched in October 2021, targeting consumers who are new to investing, and aims to provide them with information to make better-informed investment decisions.
Sarah Pritchard, executive director of markets at the FCA said: "Consumers need to have confidence when making investment decisions and the data we've published today shows how prevalent scams can be. Before investing, check you know who you are really dealing with, check if they are authorised by the FCA and do your research to understand the risks that might be posed. Find out how to avoid scams on the ScamSmart website and get tips on investing safely on the InvestSmart website."
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