Alongside inflation, FCA sees surge in scams

With scammers seeking to take advantage of growing household financial pressures, the British Financial Conduct Authority (FCA) had its busiest-ever quarter as it grappled with dubious promotions.

The FCA reported that it intervened to require amendments or withdrawals involving 4,151 financial promotions in the third quarter (from July to September), which marked the highest level on record.

In particular, the regulator said that it found cases of unauthorized firms and individuals seeking to take advantage of the rising cost of living with “loan fee” and “advance fee” frauds; along with actions to curb misleading behaviour by registered firms.

“As consumers feel the financial squeeze, they could be tempted by high risk, unregulated products and services or they could become a target for scammers preying on moments of vulnerability,” said Mark Steward, executive director of enforcement and market oversight at the FCA, in a release.

“As a result, we’re doing even more to tackle false claims in adverts, issue prompt warnings to consumers, and we continue to engage with the largest tech and social media platforms as they also play an important part in protecting consumers from online harm,” he added.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.