Criminals are an inventive lot and they have come up with yet another scam targeting investors.
Brooks Macdonald International (BMI) chief executive Andrew Shepherd sent an email warning after being made aware that clients of other firms have been contacted by individuals claiming to be from the Financial Conduct Authority (FCA) or law enforcement.
He said that no clients at BMI have been affected by the fraud but stressed that they must “be extra vigilant”.
How does it work?
Clients are told that an investment manager or firm is under investigation.
They are specifically asked not to speak to their investment manager, family or friends as this would be considered ‘tipping off’.
The scammer advises them to encash their portfolio and move the money to the client’s bank account, at which time an investment recommendation is made, which is a scam.
Taking precautions
Shepherd offered five key points to look out for:
- Scams often start by the fraudster hacking into an email account and tracking email exchanges. Please keep your email security measures up to date.
- Scams often use fake email addresses and websites. Look out for words mis-spelt, or email addresses and names you are unfamiliar with.
- The email will often ask you to do things, in secret and/or quickly.
- If in doubt, check the FCA warning list – this will help you check an investment or pension opportunity and avoid scams.
- You can also find more advice on fca.org.uk/scamsmart.
