Protecting yourself against share fraud
Fraudsters often use pressure tactics to trick investors. They might offer to sell worthless or non-existent shares, or buy your shares at an inflated price in return for an upfront payment. These scams promise high profit, but you’ll probably lose your money.
Have you been:
- contacted out of the blue?
- promised tempting returns and told the investment is safe?
- called repeatedly?
- told the offer is only available for a limited time?
If so, you may have been contacted by fraudsters.
How to protect yourself
1. Reject cold calls
If you get an unexpected call about buying or selling shares, it’s likely a scam. Hang up immediately.
2. Check the firm on the Financial Services register
The register lists all firms and individuals regulated by the Financial Conduct Authority (FCA). You can use it to confirm that they’re a genuine firm.
Visit fca.org.uk/register
It’s very important to note that if you deal with an unauthorised firm, you won’t be eligible for compensation under the Financial Services Compensation Scheme.
3. Get impartial advice
Before you hand over any money, seek advice from someone unconnected to the firm that contacted you.
Find out more about protecting yourself from fraud at: https://www.fca.org.uk/scamsmart
What to do if you think you're dealing with fraudsters
If you think you've been approached by fraudsters, report it to the FCA using the share fraud reporting form or call the FCA Consumer Helpline on 0800 111 6768.
If you've lost money to investment fraud, contact Report Fraud on 0300 123 2040 or online at www.reportfraud.police.uk/.