In 2022, as
part of investment crimes in the United Kingdom, investors lost a staggering
£750 million. Scammers often used phones in their activities and cold-called
their potential victims, encouraging them to trade. The UK Treasury has just
published a consultation paper on the proposal to ban cold calling in the
country, which was presented by the Financial Conduct Authority (FCA) in May.
The United Kingdom Wants
to Block Investment Cold Calling
On the list
of instruments whose providers are to be subject to a ban on using telephones
for marketing purposes, we find payment and banking instruments, including
electronic money and cryptocurrencies. In addition, the latest document lists
insurance products, credit, mortgages, and investments in tangible items.
The British
government argues that without a ban on cold calling, scammers can continue to
move from one financial product to another to circumvent current laws or
exploit legal loopholes. The cold calling ban will not completely prohibit
companies from contacting consumers; it will apply to marketing and promotional
activities.
“It
will also not affect the ability of firms to send routine customer service or
administrative messages, for example, informing customers when a product
contract is…
