WARNING to shareholders – share fraud
Genuit Group plc is aware that numerous fraudsters use shareholder information to perpetrate a variety of share fraud scams. Share fraud includes scams where investors are called out of the blue and offered shares that often turn out to be worthless or non-existent, or offered an inflated price for shares that investors already own. These calls come from fraudsters operating in ‘boiler rooms’ that are mostly based abroad.
Where high profits are promised, those who buy or sell shares in this way usually lose their money. The Financial Conduct Authority (FCA) has found most share fraud victims are experienced investors who lose an average of £20,000, with around £200m lost in the UK each year.
If you are offered unsolicited investment advice, discounted shares, a premium price for shares you own, or free company or research reports, you should take these steps before handing over any money:
- Get the name of the person and organisation contacting you
- Check the FCA Register to ensure they are authorised
- Use the details on the FCA Register to contact the firm
- Call the FCA Consumer Helpline on 0800 111 6768 if there are no contact details on the Register or if you are told they are out of date. More details can be found on the consumer helpline section of the FCA website.
- Search the list of unauthorised firms and individuals to avoid doing business with on the ‘Unauthorised Firms’ section of the FCA website
REMEMBER: if it sounds too good to be true, it probably is!
If you use an unauthorised firm to buy or sell shares or other investments, you will not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme if things go wrong.
Report a scam
If you are approached about a share scam you should tell the FCA using the share fraud reporting form where you can find out about the latest investment scams. You can also call the Consumer Helpline on 0800 111 6768.