FCA warns public of investment scams as over £197 million reported losses in 2018

Investigators Launch A Warning System To Help The Public Identify Cyber Risks

The banking industry reported an increase in authorised frauds – where the victim approves a fund transfer. In addition, the cases of impersonation increased when people were deceived and threatened to pay for their security during the epidemic. 

The high-return deals involving payment in digital currencies and overseas property schemes offered by many such firms promise to get clients over 10 per cent returns in a year. 

All such plans involving calls and emails help the criminals gather data. The number of cases where the victims expected to get a huge return or reimbursement, where the sales representative disappeared after extracting funds, has increased. 

The FCA is working to protect people and has published over 300 warnings about such firms. The warning list is a great resource for smart investors who can use it to protect themselves. The fraudsters have targeted banks' security systems to deceive people into handing away their money and data.  

 Identifying The Alerts

• The FCA released the warning list to identify the alerts -

• Communication through any mode- unsolicited calls, contact online, posts, text messages, word of mouth or social media, or a seminar or exhibition, from a stranger asking to spend on the project is a threat.

• Such schemes offer unrealistic returns, fake literature and unauthorised documents to back their claims. Therefore, discussing all related queries with an expert before making any decision is important. 

• Some send professional plans and brochures and claim to be regulated. They want the client to decide in a hurry. So they offer bonuses or heavy discounts to people who invest before a given date or pay the initial instalments before the deadline. 

• They ensure full support to the client and try to build a relationship with the customer. 

• If you suspect such communication, reject the offers immediately and check the FCA register to know about the firm's characteristics, management, and services. 

• Search for risk factors and related scams and get reviews from previous clients. You should seek impartial guidance from an expert before putting your money into any such investment. Always ask questions and challenge the requests made to access your account details or reject them directly.