Consumer watchdogs are warning investors about a new investment scam – graphene.
Graphene is a man-made compound derived from carbon that IT and technology firms are expecting will become the material of choice for display screens, batteries and electrical circuits.
However, Financial Conduct Authority fraud investigators uncovered plans to fleece investors with a new scam involving grapheme when they raided a suspected bogus share firm.
Computer records showed firms involved in carbon credit frauds, cheating investors with land banking cons and rare earth scams were setting up a new venture to swindle investors involving graphene.
“We have had reports that callers promoting graphene investments are using dubious, high-pressure sales tactics and targeting vulnerable consumers,” said an FCA spokesman.
“There is a strong possibility of fraud with graphene because it is unregulated and it is difficult to confirm that you have bought the genuine product.”
Companies dealing with graphene buy the material in huge quantities and are unlikely to have any interest in small amounts held by individuals, rendering the investments worthless, explained the spokesman.
“Most firms promoting and selling graphene investments have no FCA authorisation. We strongly advise you to only deal with financial services firms that are authorised by us, and check our register to ensure they are before agreeing to part with any money,” said the spokesman.
Graphene is touted as a huge technical advance by scientists, and pioneers in the new technology have won a Nobel Prize.
The FCA warns that scam sharks are riding on the back of this publicity to take advantage of unwary investors.
Warnings about bogus advisers
The FCA has also issued these warnings about bogus firms posing as regulated financial advisers:
- Jarvis Cohen Associates
- LBV Asset Management, LBV (clone firm)
- Gold Asset Associates
- Protected Today
- Fast Line Legal Services
- Leighton Corporate Services LLC
- Amber Asset Management (clone firm)
- McQueen and Bond
Dealing with an unregulated firm
If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.
Checking if a firm is regulated
Go to the Financial Services Register to check if a firm is regulated in the UK.
Reporting a suspected bogus adviser
Find out how to report unauthorised advisers on the FCA web site
