FCA launches campaign urging public to speak out against investment scams

People are more likely to report fly-tipping in their local area than report a suspected scam, according to a poll by the FCA

The FCA said it received more than 8,000 reports of potential scams last year (Reuters)

The City regulator is urging the public to report suspected investment scams after finding that more than a fifth of those targeted by fraudsters remain silent.

The Financial Conduct Authority (FCA) has launched the ScamSmart campaign after a poll found 22 per cent of over-55s who suspect they have been contacted about a fraudulent investment opportunity did not report it, with 49 per cent of these people saying they did not know who to tell.

While 63 per cent said they would report a suspected scam, the figure is significantly lower than the 81 per cent who would report fly-tipping in their local area.

The FCA said it received more than 8,000 reports of potential scams last year, while its survey found that Londoners are the most likely to report suspected fraud compared to other regions.

The regulator publishes warnings about potentially fraudulent firms to its 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 currently contains details of nearly 4,000 firms to avoid.

The FCA also takes civil court action to stop illegal activity and pursues criminal prosecutions for the most serious cases, last year returning more than £3m to victims.

The campaign follows City of London Police reporting that a growing investment scam involving so-called binary options trading, where individuals can bet on share price or currency movements, is resulting in fraud victims losing an average of nearly £26,000 each.

FCA director of enforcement Mark Steward said: "It's clear to see that by reporting suspicious investment schemes to the FCA, people are having a direct impact in helping to stop fraudsters exploiting others. But there is still more we can all do and we need the public's help.

"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."

The FCA advises consumers to reject unsolicited contact about investments and to check the FCA Register and Warning List before investing. Suspected investment scams can be reported to the FCA at http://www.fca.org.uk/scamsmart or via their contact centre on 0800 111 6768. YouGov surveyed 1,006 adults online between September 18-24.

PA