Store First investors targeted with fake FSCS letters
- Oct 2, 2024
- 1 min read
Store First investors have been targeted with fake FSCS letters with a fake contact number on them, pretending to offer to assist with a claim for their money back. This is Money reported the story with copies of the fake letters sent in from readers.
Store First was a perfect example of a bad alternative investment that goes wrong and it is famous in the investment world. They offered guarantees of very high rates to investors in fixed income vehicles to do with storage units. The rates they were offering were unsustainable and the whole scheme collapsed with a £206 million hole in it, with thousands of investors losing their money.
Because it was an alternative investment, the investors weren't protected by the Financial Services Compensation Scheme (FSCS). There could be a case for a claim from the FSCS if an IFA or a SIPP had been involved in a Store First investment, but these cases would be very rare.
UKIA rarely works with fixed income products. Our experienced management have learned to be very wary in the alternatives market and as we covered a few days ago corporate bonds and fixed income products can be very risky.
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