Share fraud warning

Companies have become aware that fraudsters and unauthorised companies approach investors from time to time, using persuasive and high-pressure tactics to lure them into selling their shares at a discount, or offering to buy shares at an inflated price in return for an upfront payment. While high profits are promised, if you buy or sell shares in this way you will probably lose your money.

The Financial Conduct Authority (FCA) highlights the issue of such ‘boiler room scams’ and provides information and resources for investors at www.fca.org.uk/consumers/share-bond-and-boiler-room-scams.

How to avoid share fraud

• Keep in mind that firms authorised by the FCA are unlikely to contact you out of the blue with an offer to buy or sell shares.
• Do not get into a conversation, note the name of the person and firm contacting you and then end the call.
• Check the Financial Services Register from www.fca.org.uk/scamsmart to see if the person and firm contacting you is authorised by the FCA.
• Beware of fraudsters claiming to be from an authorised firm, copying its website or giving you false contact details.
• Use the firm’s contact details listed on the Register if you want to call it back.
• Call the FCA on 0800 111 6768 if the firm does not have contact details on the Register or you are told they are out of date.
• Search the list of unauthorised firms to avoid at www.fca.org.uk/consumers/warning-list-unauthorised-firms.
• Consider that if you buy or sell shares from an unauthorised firm you will not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme.
• Think about getting independent financial and professional advice before you hand over any money.
• Remember: if it sounds too good to be true, it probably is!

Report a scam

• If you suspect that you have been contacted by fraudsters, report it to the FCA using the share fraud reporting form at www.fca.org.uk/consumers/report-scam, or call 0800 111 6768 (freephone), 0300 500 8082 (UK), or +44 207 066 1000 (abroad).
• You can also call the FCA Consumer Helpline on 0800 111 6768.
• If you have already paid money to share fraudsters you should contact Action Fraud on 0300 123 2040 or via their website at www.actionfraud.police.uk.