People are being warned to watch out for investment scams after a regulator said it had seen an increase in inquiries. Between April and September last year, the Financial Conduct Authority (FCA) was contacted by 16,400 people about possible scams, up nearly a third from the same period in 2020.
Cryptoasset cons were among the top scams reported, with some scammers also impersonating the FCA. Boiler room scams were also common. These involve frauds being run out of offices known as boiler rooms and criminals contact people out of the blue and convince them to invest in schemes or products that are worthless or do not exist.
The FCA also said it was taking assertive action in the consumer investment market and had stopped around one in four firms wanting to join from entering it. The regulator's ScamSmart campaign encourages those considering investing to check its dedicated website.
