The UK’s financial services watchdog has issued a warning that a financial technology startup being promoted by a host of social media influencers may be a scam.
London based Lanistar, which claims to offer “the world’s most secure card”, has been warned by the Financial Conduct Authority for operating without authorization.
The company, founded by young British entrepreneur Gurhan Kiziloz, launched a major social media campaign this week, reportedly paying some 3,000 influencers to promote their brand. It is believed it is this campaign which brought the firm to the FCA’s attention.
“We believe this firm has been providing financial services or products in the UK without our authorisation…. This firm is not authorised by us and is targeting people.” The FCA said in a statement.
“Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us,” the statement continued. “However, some firms act without our authorisation and some knowingly run investment scams.”
Lanistar responded quickly to the FCA statement, saying in a statement of its own that they are not yet offering financial services and as such do not currently need FCA approval.
“Legal and regulatory compliance are central to Lanistar’s business and we confirm that we are not providing financial services or products without the FCA’s authorisation.” said the company.