Guard against new AI scam threat

AN impersonation fraud masquerading as Trading Standards and targeting modest savers has taken a dangerous new turn with Artificial Intelligence playing a possible role in ramping up the hazards.

- By MAISHA FROST

The swindle's roots lie in the misselling scandal of Store First Limited, a £206million self-storage pod scheme that collapsed after promising lucrative returns that never materialised.

The unregulated firm and three related businesses were wound up in 2019 by the Insolvency Service to protect creditors, many of them older or self-employed manual workers.

Since then investors have been warned of data theft and crooks ripping them off with fake claims and compensation opportunities.

If a regulated company goes bust the Financial Services Compensation Scheme (FSCS) safeguards up to £85,000 of the value of someone's savings, pension or investments.