Britain’s Financial Services Compensation Scheme (FSCS) today warned clients of the collapsed broker London Capital & Finance about persons that approach them, claiming that they can help them refund their investments.
Around 12,500 investors suffered major losses following the £236 million collapse of the mini-bond issuer in 2019.
The lifeboat system said investors should not be lulled into false communications trying to usurp its identity to defraud them in a recovery scam, in which individuals are asked to pay a fee upfront before they receive any proceeds.
“LCF bondholders are still being approached by scammers. Fraudsters using the company names LC Holdings and Capital Finance are claiming to be able to get compensation for the full amount of your LCF investment. Both are scams, and there may well be others. Be very wary of any emails, letters or calls claiming to be from LCF or someone else offering to help you get access to compensation. If you are unsure at any time if a call is genuine, please hang up and contact us directly using the information on our Contact us page,” FSCS added.
The uptick in scammers activities comes two weeks after FSCS said it has paid over £114 million in compensation to 12,330 investors. Of this figure, FSCS has contacted more than 700 bondholders with details of their compensation since the scheme provided its last update in April. The last instalment was paid under a government’s redress scheme to reimburse eligible LCF…
