LCF investors being targeted by scammers, FSCS warns
Scammers are using social media to get in touch with London Capital & Finance investors, pretending to be from the FSCS and offering them compensation.
The Financial Services Compensation Scheme (FSCS) last week warned London Capital & Finance investors to be extra vigilant in the wake of scammers targeting the victims.
Scammers are using social media networks to get in touch with LCF investors, who are pretending to be from the FSCS or offering them the chance to get compensation. The FSCS warned that these messages are coming from:
- WhatsApp, Messenger, or posted on Facebook;
- linking to unfamiliar websites;
- phone calls from strangers or friend requests from unusual profiles; and
- purporting to be from FSCS.
The lifeboat fund stated:
LCF bondholders should be wary of messages inviting them to discuss compensation about LCF.
Such messages are being sent through various online and mobile platforms and targeted at consumers who might have a claim regarding LCF. Do not respond to such messages nor engage in any way with the source. FSCS is aware of these scams and reports them to the appropriate agencies.
Who were London Capital & Finance?
London Capital & Finance went into administration in March 2019 after the FCA froze its activities due to mis-leading, unfair and unclear communications in regards to a “Fixed Rate ISA”.
This ISA promised an 8% return from secure ISAs, and was marketed across the internet using online adverts. A total of 11,500 investors put a combined £236m into London Capital & Finance over the course of two years before the FCA had realised the firm was mis-leading individuals.
London Capital & Finance was authorised by the Financial Conduct Authority (FCA), however the FCA stated this was in relation to providing consumer advice, not the sale of bonds or ISAs.
Not only were investors told they would receive 8% returns on their “secure” ISA, they were also informed that their funds – and therefore their risk – would be spread across hundreds of companies. However, according to Companies House, LCF loaned money to just 12 companies:
This week, the FSCS has paid around £2.7m to 135 London Capital & Finance customers. The payments were made in relation to 151 bonds that were invested following transfers out of stocks and shares ISAs.
How can Smooth Commercial Law help?
At Smooth Commercial Law, our team of solicitors have extensive experience in dealing with a whole manner of claims that arise from negligent and/or unsuitable financial advice. We are seeing an increase in claims for mis-sold pensions, and have managed to secure compensation for many of our clients.
Should you have a claim, we can deal with your case and look to recover compensation for not just your loss of investment but also any adverse tax liabilities that you may now be facing as well.