Warning as bogus bond ad promises 35% return

READERS are being urged to avoid a ‘scam’ advert doing the rounds on professional networking website LinkedIn promising annual returns of up to 35 per cent.

The advert is from Londonbased company UK Bonds, which claims to be the ‘UK’s leading provider in secure investments’. Its website – ukbonds.org.uk – says the products it offers are covered by the Financial Services Compensation Scheme and approved by the City regulator. It then uses the logos of the London Stock Exchange, the FSCS and two media groups to give its offerings further credence.

Returns from the bonds, it says, are ‘guaranteed’ and ‘100 per cent secure’. It then provides details of bond offerings with leading financial brands, including BNP Paribas, Co-operative Bank, Fundsmith and HSBC. It says fixed one-year returns of between 10 and 12 per cent are available on these.

Justin Modray, of Candid Financial Advice, saw the advert on LinkedIn a few days ago and immediately smelt a financial rat. He says: ‘There were no company details on the website other than an address and telephone number. I imagine there are a lot more websites like this that seek to take advantage of vulnerable people.’

On Friday, investigations by Personal Finance confirmed that the company is not authorised by regulator the Financial Conduct Authority. Also, one of the companies promoted by UK Bonds said the product was ‘not legitimate’ and ‘had nothing to do with them’.

Personal Finance repeatedly rang the number given on the website, only to be met with a wall of silence. Furthermore, the picture of the company’s headquarters on its website bears no resemblance to the building at the given address.