Be a ScamSmart Investor

Scams can be sophisticated, but if it sounds too good to be true, it probably is. Find out how to spot the warning signs of investment, pension and other financial scams.

Scams can be difficult to spot. Fraudsters can be convincing and knowledgeable, with websites and materials that look identical to the real thing.

But if you’ve been contacted unexpectedly, or are suspicious about a call or text message, make sure you stop and check the warnings signs.

  • Is it unexpected? Scammers often call out of the blue. They may also try and contact you via email, text, post, social media, or even in person.

  • Do you feel pressured to act quickly? Scammers might offer you a bonus or discount if you invest quickly, or they may say the opportunity is only available for a short time.

  • Does the offer sound too good to be true? Fraudsters often promise tempting rewards, such as high returns on an investment.

  • Is the offer exclusively for you? Scammers might claim that you’ve been specially chosen for an investment opportunity, and it should be kept a secret.

  • Are they trying to flatter you? Scammers often try to build a friendship with you to put you at ease.

  • Are you feeling worried or excited? Fraudsters may try to influence your emotions to get you to act.

  • Are they speaking with authority? Scammers might claim that they’re authorised and often appear knowledgeable about financial products.

If you answered ‘yes’ to any of these questions, or you’re unsure if a contact is genuine, follow the steps below to protect yourself. The FCA also has a useful website where you can check details of any investment opportunity you have been offered.

How to protect yourself

Do: 

  • Treat all unexpected calls, emails and text messages with caution. Don’t assume they’re genuine, even if the person knows some basic information about you.

  • Hang up on calls and ignore messages if you feel pressured to act quickly. A genuine bank or business won’t mind waiting if you want time to think .

  • Check your bank account and credit card statements regularly.

  • Consider getting independent financial advice or guidance before a big financial decision (MoneyHelper has information on how to find a financial adviser).

  • Check if the firm or individual is authorised by the Financial Conduct Authority (FCA) using their FS Register. Remember, some firms pretend to be authorised firms, so always use the contact details on the FS Register. You can also check overseas regulators if you’re dealing with an overseas firm (you should also check the list of scam warnings from overseas regulators).

Don’t: 

  • Give out your bank account or credit card details unless you’re certain who you’re dealing with.

  • Share your passwords with anyone (including your social media passwords).

  • Give access to your device by downloading software or an app from a source you don’t trust. Scammers may be able to take control of your device and access your bank account.

What should you do if you have been scammed?

Report it 

If you’re worried about a potential scam or you think you may have been contacted by a fraudster, report it to the FCA. This could help prevent others falling victim to the same criminal.

You can reach the FCA by calling 0800 111 6768 or use their contact form to get in touch.

For anything not regulated by the FCA, or if you’ve lost money to a scam, contact Action Fraud on 0300 123 2040 or via their website. 

Be wary of future scams 

It’s important to be extra careful if you’ve already been scammed. Fraudsters could try and target you again, or they may sell your details to other criminals.

The new scam might be completely different, or it could be related to the previous scam. For example, you could be contacted with an offer to get your money back or to buy back an investment after you pay a fee. These are known as recovery room scams.

If you have any concerns at all about a potential financial scam, contact the FCA immediately.

Financial Services Compensation Scheme

City Asset Management Plc is covered by the Financial Services Compensation Scheme (FSCS). The FSCS is a statutory fund of last resort that can pay compensation if a financial services firm is unable, or unlikely to be able to pay the claims laid against it to those who have direct losses as a result of the firm’s failure.

Established under the Financial Services Markets Act 2000 (FSMA), the FSCS is an independent body and is there to provide you with free access to a source of redress. FSCS is funded by the financial services industry and makes no charge to consumers.

Please be aware that there are different limits for different financial services and product offerings. For further details on FSCS protections, please see the FSCS website at www.fscs.org.uk

The FSCS compensation scheme covers your investments with automatic protection of up to £85,000* per person per firm, if the investment firm you invest with goes out of business.  The FSCS can pay compensation if the firm concerned has failed and cannot return your investments or money owed, and you lose money because of:

·         Bad or misleading investment advice;
·         Negligent management of investments;
·         Misrepresentation; or
·         Fraud.

All client money and assets are fully segregated from our own funds in accordance with the Financial Conduct Authorities (FCA) Client Money and Asset Rules.

The FSCS also covers Self Invested Personal pensions (SIPPs) which are as type of ‘wrapper’ for a bundle of products can include insurance products, investments or deposits. If the provider of the underlying product held within the SIPP fails, the FSCS compensation limit depends on the type of product held within the SIPP.

For joint accounts, each individual account holder is eligible to claim up to the relevant FSCS limit.

If an overseas entity which holds your money or assets becomes insolvent, then the FSCS will not provide any compensation to you.

Please note that these protections are the same for both Retail and Professional clients (as defined by the FCA)

 

*Correct at April 2024. This limit is subject to change and at the discretion of the FCA and FSCS.