The Financial Services Authority (FSA) has written to over 75,000 people with a warning that they are at risk of being targeted by fraudsters.
Those being contacted by the regulator appear on a list of 76,732 people being used to sell landbanking investments or shares in companies that do not exist.
The FSA will be emailing over 19,000 of these people and writing to the rest with a warning.
Announcing the move, which is the largest campaign the FSA has ever launched, head of unauthorised business Jonathan Phelan said:
“If you get a letter or email from the FSA over the next five or six weeks, please read it, it could save you tens of thousands of pounds.
“If you have already been contacted by a firm offering you a ‘once in a lifetime’ investment opportunity or have already invested, then tell us. The information you have could help us catch criminals and shut down their scams.”
In many cases, the fraudsters are using the names of big banking brands in an attempt to establish credibility.
Bank names including Bank of Scotland, Barclays Bank, the Co-operative Bank, Coutts & Co, Halifax, HSBC, Lloyds TSB, Natwest and the Royal Bank of Scotland have been used by fraudsters trying to sell worthless investments.
Investors should always take care to ensure they only do business with genuine firms that are authorised and regulated by the Financial Services Authority.
Never part with your money until you have completed some basic due diligence to prove the existence of the firm and its regulatory status. If in doubt, ask us for a second opinion before investing and always keep in mind that if an investment seems too good to be true, it probably is!
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