Safeguarding against fraud

Fraudsters use persuasive and high-pressure tactics to lure investors into scams. They may offer to sell shares that prove to be worthless or non-existent, or they can offer to buy shares at an inflated price in return for you paying upfront. They promise high profits. However, if you buy or sell shares in this way, you will probably lose your money.

How to avoid share fraud

• Remember that FCA-authorised firms are unlikely to contact you unexpectedly offering to buy or sell shares.
• Do not converse with them. Note the name of the person and firm contacting you, then end the call.
• To see if the person and firm contacting you are authorised by the FCA, check the Financial Services Register at https://register.fca.org.uk/s/.
• Beware of fraudsters claiming to be from an authorised firm; copying its website; or giving you false contact details.
• If you want to phone the caller back, use the firm’s contact details listed on the Financial Services Register at https://register.fca.org.uk/s/.
• If the firm does not have contact details on the Register or they tell you the details are out of date, call the FCA on 0800 111 6768.
• Search the list of unauthorised firms to avoid at https://www.fca.org.uk/consumers/warning-list-unauthorised-firms.
• Remember that if you buy or sell shares from an unauthorised firm, you cannot access the Financial Ombudsman Service or Financial Services Compensation Scheme.
• Get independent financial and professional advice before handing over any money.
• If it sounds too good to be true, it probably is.

Report a scam

If fraudsters approach you, tell the FCA using the share fraud reporting form at https://www.fca.org.uk/consumers/report-scam.

You can also find out more about investment scams at https://www.fca.org.uk/consumers/protect-yourself-scams.

You can call the FCA Consumer Helpline on 0800 111 6768. If you have already paid money to share fraudsters, call Report Fraud on 0300 123 2040.