The FCA’s Unauthorised Business Department (UBD) takes action against unauthorised investment businesses, including share frauds, landbanking and certain ‘get rich quick’ investment scams. Over the past year UBD have received over 8,000 reports of potential unauthorised activity in the UK and the FCA as a whole receives around 5000 calls a year from investors about suspected investment fraud. The average investor loses around £20,000. With 35% of Aberconwy constituents likely to have investments, the risk of investment fraud is a real worry for local residents.
The FCA identify the most serious matters posing the greatest risk to consumers and can bring legal proceedings against the perpetrators, take down websites, and publish consumer warnings. Recently a fraudster was sentenced to 10 years in prison, the longest sentence ever imposed in a prosecution brought by the FCA. The UBD have also been working to directly educate consumers and warn people about the dangers posed by unauthorised investment scams.
Guto hopes Aberconwy residents are aware of some of the measures they can take to protect themselves against investment fraud. “I hope local residents know to reject cold calls offering “get rich quick” schemes and other investment opportunities. I would also encourage residents to look at the FCA’s ScamSmart Campaign and to consult the FCA Warning List to find out if a company offering them an investment opportunity is authorised to do so.”