News
Consumers warned over new share scam
The Financial Services Authority (FSA) has issued a warning following the dramatic increase in overseas fraudsters selling shares using the names, registration numbers and addresses of FSA authorised firms and individuals.
The FSA has noticed a significant rise in this type of fraud, with crooks imitating genuine authorised firms to try and convince consumers of their legitimacy. Recently the FSA has seen instances where an authorised firm’s website has been cloned but with a few subtle changes, such as a different phone number or false email addresses.
The regulator recommends that anybody receiving an unsolicited call or email from a firm, which they are not a customer of, should take the following steps:
- ask for the contact details of the person calling you
- check the firm or individual’s status on the FSA register
- call the firm back on the switchboard number provided on the FSA register to make sure that the call came from the legitimate authorised firm.
Anybody who has been contacted by a suspicious firm or has any doubts should report the encounter as soon as possible by calling the FSA on 0300 500 5000 or reporting it online.
Consumers also need to be aware that firms not registered with the FSA are not covered by the Financial Services Compensation Scheme. This means that should somebody invest through an unauthorised business, it is very likely they will lose their money if the firm goes bust or disappears.
