It is urging the public to get in touch if they have been contacted by a company offering what they think could be a fraudulent investment as new research shows more than a fifth (22%) of over 55s surveyed who suspect they have been contacted about a fraudulent investment in the last three years, did not tell anyone about it. The most common reason given for not reporting was not knowing who to report to (49%).
The regulator says that encouragingly 63% would report a suspected investment scam to an organisation. However, this is significantly lower than those who would report spilled liquids in a supermarket (84%) or fly tipping in their local area (81%).
Of those who said they would tell someone if offered a fraudulent investment, almost three quarters (72%) would speak with their partner, and a similar proportion would tell a family member (69%) or a friend (59%).
Last year the FCA received over 8,000 reports of potential scams, with Londoners reporting the highest number of complaints, followed by those from Birmingham, Belfast and Guildford.
ScamSmart Cities - Top 10 areas of the UK for reporting suspected investment scams
1. London
2. Birmingham
3. Belfast
4. Guildford
5. Brighton
6. Chelmsford
7. Redhill
8. Sheffield
9. Joint 9th = Norwich, Reading
The regulator publishes warnings about potentially fraudulent firms which are added to the FCA Warning List, an online tool that helps investors check a list of firms operating without authorisation and find out more about the risks associated with an investment. This list contains details of nearly 4,000 firms to avoid.
The FCA also takes civil court action to stop illegal activity and for the most serious cases, pursues criminal prosecution, it says. Last year, the FCA returned over £3 million to victims of unauthorised activity, including investment fraud.
Mark Steward, director of enforcement at the FCA, said: “We are encouraging people to speak out on behalf of their family or local community, just like they would report a crime in their local area.”
TV's Countdown host Nick Hewer, who is supporting the campaign, added: “As someone who has been approached by scammers myself, I know that it’s not always easy to distinguish between a real and a fake investment offer. It’s vital that more people speak out to get these schemes closed for good.”
The FCA’s consumer advice is:
1. Reject unsolicited contact about investments.
2. Before investing, check the FCA Register to see if the firm or individual you are dealing with is authorised and check the FCA Warning List of firms to avoid.
3. Get impartial advice before investing.
Suspected investment scams can be reported to the FCA at www.fca.org.uk/scamsmart or via its contact centre on 0800 111 6768.