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Graphene investment scams on the rise

The Financial Conduct Authority (FCA) has warned that consumers are increasingly being targeted by fraudulent firms offering investment opportunities in graphene.

Investment

The UK financial regulators have received a large number of reports from people who have been offered investments in graphene, which is a type of carbon that may one day be used in display screens, electrical circuits and batteries.

Although millions is being spent on the research of graphene development - it is unlikely to be used commercially on a significant scale until around 2020.

Graphene linked to bolier rooms

When the FCA first uncovered this issue they found evidence of a 'graphene investment firm' on the computers of a suspected boiler room. Boiler rooms involve fake stockbroker’s cold calling people to pressure them into buying shares that promise high returns.

These bolier rooms were selling other high risk products such as carbon credits, rare earth metals and overseas land and crops.

The regulator warns that 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.

Protection when investing

  • Remember: if it sounds too good to be true, it probably is!
  • Most firms promoting and selling investments graphene are not authorised by the FCA. Check their register to make sure.
  • If you buy an investment product from a firm that is not authorised by the FCA you do not have access to compensation from the Financial Ombudsman Service.
  • Check the FCA’s list of unauthorised firms to avoid doing business with.

For further information please visit the FCA website.

Please note that Action Fraud is not responsible for the content of external websites.

To report a fraud and receive a police crime reference number, call Action Fraud on 0300 123 2040 or use our online fraud reporting tool.

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