The FCA has launched a major crackdown on scam bond and investment comparison websites in signs of a tougher approach from the regulator.
Since the beginning of May the FCA has issued nearly 140 warnings about scam comparison sites, clone firms and unauthorised firms targeting UK investors.
There have been more than 30 warnings alone on bogus bond and investment comparison sites, many with similar names.
The sites, mostly unauthorised, are used to lure unsuspecting investors and often claim to offer access to unrealistically high interest rates which are never delivered.
The sites should be avoided, the FCA warns.
In at least one case recently, the FCA has worked with Nominet, the official registry of UK domain names, to have a site domain suspended and a 'ScamSmart' inserted instead.
Following the London Capital & Finance (LCF) mini-bond fiasco, which saw 11,600 investors lose over £236m, the watchdog promised to target scam sites offering bogus bond and savings returns.
Google and other search engines promised recently to tackle these sites which have often appeared high up in online searches, a factor which can confer fake legitimacy on the sites.
Scam bond and investment comparison sites have been one of the biggest scourges for unwitting investors and savers looking for higher returns. Mini-bond provider LCF used extensive online advertising to lure investors desperate for better returns as savings account rates plummeted.
Many of the comparison sites work on behalf of third parties, acting as conduits for scammers to reach consumers.
In the case of LCF, the government was forced to step in to compensate investors after the FSCS looked likely to reject many of the claims due to LCF being only partly regulated.
Among the websites targeted in the FCA crackdown are: ‘Investment Compare ( http://investment-compare.com/)’, ‘Fixed Rates Finder (https://fixedratesfinder.co.uk/’) and ‘What Bond (https://www.whatbond.co.uk/).’ All the firms behind these sites are unauthorised.
FCA warnings issued this month include:
Compare Rates UK
Investment Comparison Online
Check a Bond
London Investment Bonds Plc / London Chelsea Group Ltd
Cash Pension
compare-uk.com
Compareuk-bonds.com
Money-bonds.co.uk (Clone of FCA authorised firm),
This email address is being protected from spambots. You need JavaScript enabled to view it.
Find ISAs Online (Clone of FCA authorised firm)
Max ISA
fixedratefinder.com
comparebondinvestments.co.uk
Top UK Investments
Better Fixed Rate Returns
myinvestmentoptions.uk
Super Saver Rates
bondratesuk.uk
comparedbonds.uk
Bonds Comparison
Tax Free Bond
Income ISAs / iisa.uk.com (Clone of FCA authorised firm)
www.compareratesuk.com
www.ukfixedsavings.co.uk
www.myinvestmentoptions.co.uk
Solutions4Savings
Fixed Rate Finder
protectedrates2021.com
ethicalfixedrates.com
FIXED RATE RETURNS
find-investment-bonds.com
Details can be found on the FCA website.
The FCA has been asked for comment on the crackdown.