Investors who have already lost thousands of pounds in the collapse of failed “mini-bond” provider London Capital & Finance (LCF) are now being targeted by scammers looking to take further cash from victims.
More than 12,000 people invested a combined £237m in LCF’s risky mini-bonds before the firm collapsed in January 2019 – with most of the affected unable to get any of their money back.
A warning has now been issued about fraudsters who are preying on the victims claiming that they are able to secure compensation.
Bondholders have reported receiving phone calls, emails and messages on WhatsApp or Facebook which claim their compensation is due from the industry-backed compensation fund.
Mini bonds | The risks
The Financial Services Compensation Scheme (FSCS) – which last month told most bondholders they were unlikely to receive any payout – has warned investors not to engage with these scammers. In many cases these scammers have purported to be from the FSCS itself.
It told LCF customers to be wary of any links provided to unfamiliar websites or messages from strangers on social media platforms.
A statement said: “Bondholders should be wary of messages inviting them to discuss compensation about LCF. Such messages are being sent through various online and mobile platforms and targeted at consumers who might have a claim regarding LCF. Do not respond nor engage in any way with the source.”
The FSCS said it was reporting the matter to anti-fraud agencies.