Avoiding share fraud
Did you know that 5,000 people a year contact the Financial Conduct Authority to report share fraud?
An investment scam will be designed to mirror a legitimate opportunity, but if you are vigilant, you can avoid getting caught out.
Consider the following:
- Firms authorised by the FCA are unlikely to contact you out of the blue with an offer
- Don’t get into conversation. Just make a note of who contacted you and the company
- Have a look at the Financial Services Register – is the company on the list? If it is, use the contact details from the register if you want to call them back, not details they have provided to you directly
- Search the list of unauthorised firms
- Get independent and professional financial advice before you invest
- If you buy or sell shares from an unauthorised firm you will not have access to the Financial Services Ombudsman Scheme or Financial Services Compensation Scheme.
Reporting a scam
Tell the FCA if you think you’ve been approached by fraudsters. You can use their share fraud reporting form or call the FCA Consumer Helpline on 0800 111 6768.
If you have unfortunately already paid money to fraudsters, you should report it to Action Fraud on 0300 123 2040 or online.
Read the FCA’s guide to share fraud here.