The city watchdog has vowed to ‘up its game’ after a Money Mail investigation exposed how easily fraudsters can scam thousands of victims online. Last month, ThisisMoney revealed how a fake website they created, that promoted returns of 9.5% on bonds, had lured in around 1,700 potential victims within five days. Google were paid just £95.88 to advertise the website under search terms such as ‘Isa best buys’. Extraordinarily, the advert was approved despite it being flagged as suspicious. The Financial Conduct Authority (FCA) yesterday praised Money Mail for highlighting the ‘scourge’ of online scams. Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said the fake website, best2invest.co.uk, was ‘typical’ of the sort of investment scams that have spiked over the last year. He told the FCA Investigations & Enforcement summit: ‘The best2invest example demonstrates the velocity of online harm, achieving in days what took months with an ‘old school’ cold calling boiler room.’ The Mail is campaigning to clamp-down on online financial fraud. Criminals are increasingly using ‘bond comparison’ sites — such as best2invest — to avoid checks. These sites don’t have to be explicit about what they sell; asking customers for their details to pass on to ‘investment partners’. In reality, fraudsters are given the details. Last year the FCA issued 1,204 warnings on such scams — twice the number in 2019. Its 2021 tally is on track to double again. It is thought £1.7 billion was lost to fraud in 2020, with 85% of cases carried out online.

Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. The FCA does not regulate tax advice. This newsletter is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as of May 2021 and the contents of the Finance Bill. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.