FCA warns of increased risk of online investment fraud
Content of Penalty:
- Over £87,000 lost to binary options scams every day in the UK
- Under 25s are six times more likely to trust an investment offer made via social media, compared to those aged 55+
- Online overtakes phone as most common contact method for investment fraudsters
The Financial Conduct Authority (FCA) is today urging the public to be vigilant to the threat of online investment fraud. Fraudsters offering investments in binary options, contracts for difference (CFDs), forex and cryptocurrencies* (such as Bitcoin) often promote themselves online and via social media channels, such as Facebook, Instagram and Twitter. They typically promise high returns and use images of luxury items, like expensive watches and cars, to entice people to invest in their scams. After someone has invested, they distort prices on their website, tie people in with extreme pay-out clauses and even close customer accounts, refusing to pay back their money. This call comes as the regulator reveals that last year investors lost £87,410** per day to binary options scams.
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