In May 2025, Hargreaves Lansdown (HL) was forced to issue a public warning after over 600 fraudulent ads appeared online claiming co-founder Peter Hargreaves had launched a WhatsApp investment group. The scam lured users with promises of explosive stock picks and inflated past performance, ultimately exposing investors to unregulated and high-risk schemes.
What’s the Scam?
The scam used fake social media accounts and stolen branding to impersonate HL, offering daily stock tips via WhatsApp. This is what’s commonly known as a “pump and dump” scheme, where scammers push up share prices before selling off their holdings at a profit, leaving investors at a loss.
Our Thoughts
THIS REALLY MATTERS, because while this scam was swiftly reported and taken down, some users may have already sent money or followed financial advice without understanding the risks. And if a regulated entity like your bank or investment platform enabled this without proper due diligence, there may be legal grounds for compensation.
Redress: When Banks and Brokers Get It Wrong
If a regulated firm (like your bank or financial adviser) facilitates a transfer into an unregulated investment without sufficient checks, it may be liable for failing to follow regulatory guidance.
This is particularly relevant under the FCA’s Scorpion Guidance which reminds firms of their obligations to protect clients from scams — including pension scams, crypto investments, or off-plan hotel developments.
Case Law: Emptage vs the FSCS
This landmark case confirmed that compensation can still be due even when the loss arises from an unregulated investment, if the bad advice or facilitation began with a regulated activity.
In Emptage, the court ruled that the FSCS was liable for losses caused by negligent mortgage advice, despite the money being lost in an unregulated overseas property. That decision has helped many claimants who were misled into high-risk investments by banks, advisers, or mortgage brokers.
What You Can Do
If you’ve:
- Sent money from your bank into a scam
- Followed advice from a regulated firm into an unregulated scheme
- Transferred your pension or taken out a loan for investment purposes
You may be entitled to redress, even if the investment failed.
Contact us today to explore your options or read more on our Crypto and Investment Claims pages.
Want to learn more?
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Worried you may have been a victim of a scam or investment mis-selling?
Why not book a free no-obligation consultation with on of our experts and find out if you could be eligible compensation or financial redress.
