An independent financial advisor is urging regulators to adopt a new, more secure method of communicating with the sector – after an email purporting to be from watchdogs turned out to be from fraudsters.
Mike Jordan (pictured), whose Sutton Coldfield-based firm Jordan Financial Management marks its 25th anniversary in business this year, was one of a number of financial advisers across the UK who received the email, which appeared to come from the Financial Conduct Authority (FCA).
The email appears to be a due diligence request from the watchdog body, and was sent from the email address connect12@gabriel-fca.org.uk.
It says: “We require you to review and answer the relevant questions in the attached questionnaire and return as early as possible, but no later than 28 May 2020.
“Also, fill in the profile section with your up-to-date details.”
Mr Jordan became suspicious when he received the email and checked with his compliance provider.
He said: “Independent Financial Advisors will always take requests from the FCA seriously, which is why firms are vulnerable to emails such as this. It perhaps shows a new level of deception when fraudsters start impersonating regulatory bodies.
“At first glance the email was quite believable, which is why I think a new, more secure way of communicating is needed.
“The FCA oversees a public register of Independent Financial Advisors and their firms – it should be straight forward for them to provide each one of these companies with some kind of unique reference number, which would then be attached to any further communications and emails. That way we would know straight away if it was spam or worse.
“The FCA exists to protect the public and the financial services industry from scams and unscrupulous individuals. Anything that the FCA are able to do to make fake emails more identifiable and therefore protect both the firms and their clients, would be very welcome.””
The economic uncertainty created by the virus outbreak has created what has been described as a ‘fraudsters’ playground’. According to insights firm Transunion, one in 10 UK adults have fallen victim to a coronavirus scam, losing an average of £550 each, while a report by Canada Life, released on May 26, said 5.2m UK people had fallen victim to, or knew someone who had been fooled by, a financial scam during the outbreak.
Currently, the FCA’s website offers guidance on fake emails, websites, letters and phone calls.
This advice says: “Some fraudsters contact people and firms through emails, letters and on the phone, claiming to be from the FCA or using the name of FCA employees to make them seem genuine.
“We send emails from addresses ending in @fca.org.uk and @fcanewsletters.org.uk, but be aware that fraudsters can ‘clone’ these email addresses to make their emails seem genuine.
“Fraudsters may claim to be from the FCA saying we are investigating your bank (or other financial institution), they may ask you to move your money to another account for security reasons. The FCA would never do this, contact us directly if you have any concerns — do not use the contact details on any correspondence received.”
Anyone in doubt about the authenticity of contact from the FCA should call the Authority’s helpline on 0800 111 6768.
