Finnish Financial Supervisory Authority warns of a sharp rise in investment scams and urges investors to verify providers’ authorisation

The Finnish Financial Supervisory Authority (FIN-FSA) issued a warning that investment scams and attempted scams have increased significantly over the last year in Finland and internationally, with the use of social media in scams rising markedly. Investors are urged to be cautious, particularly when approached with unsolicited investment offers or tips. The FIN-FSA highlighted common scam features including investments in non-existent objects, promises of unrealistically high returns, requests to transfer funds to accounts supposedly managed on the investor’s behalf, and attempts to manipulate markets through fabricated news and other tactics. Social media is increasingly used to promote tip-focused chat groups and marketing that may misuse names and images of well-known market participants without authorisation, and scammers may also impersonate banks or investment firms to solicit transfers. Only authorised investment firms or banks, and for certain services authorised fund management companies or alternative investment fund managers, may provide investment services. Investors are advised to verify a provider’s authorisation or notification via the FIN-FSA website, or for foreign providers via their home supervisor, and to be alert to falsified authorisation certificates. Victims or suspected victims are told to stop payments immediately and contact their bank, report the offence to the police, and consider reporting to Victim Support Finland and the National Cyber Security Centre; while the FIN-FSA does not handle individual cases, it accepts scam reports for supervisory use and maintains a public warning list of scams and unauthorised service providers.