Should you invest in a firm that contacts you out of the blue? As one member discovered, it’s very risky – especially when they ask you for personal details and sensitive documents…
An anonymous Which? member told us:
‘A firm called Taylor & Clark called my dad about investing in a lithium-mining venture. Taylor & Clark asked that he email copies of his passport and a utility bill to the mining company, which he did. He received a contract, which he signed and returned.
‘Since then he’s heard no more from either firm, nor has he been asked for his bank details or to make a payment. I have called Taylor & Clark but keep getting cut off.’
Our say on investing in unauthorised firms
The Financial Conduct Authority warns: ‘We have been told [Taylor & Clark] is either operating regulated activities without the correct authorisation, or is running a scam. We strongly suggest you avoid dealing with unauthorised firms like this.’
We contacted Taylor & Clark for comment but received no response.
Investing in an unauthorised firm is risky: if something goes wrong, you can neither complain to the Financial Ombudsman Service nor claim a reimbursement from the Financial Services Compensation Scheme.
Your dad should be extremely wary of any future cold calls, emails or letters. We all should. It’s vital never to give banking details, identity documents or personal data without first verifying the identity of the person or organisation requesting it.
It’s a good idea for your dad to contact his bank and ask it to monitor his accounts. This is advisable for anyone concerned about compromised data.
Have you ever been tempted to invest in companies that contact you out of the blue? What kind of checks do you make before taking things further – or do you steer clear of these types of offers?