More than a fifth of those contacted by a suspected fraudulent investment firm stay silent, according to new research published by the FCA.

The most common reason given for not reporting was not knowing who to report to (49%).

Last year the FCA received over 8,000 reports of potential scams, with Londoners reporting the highest number of complaints, followed by those from Birmingham, Belfast and Guildford.

This supports the findings from the research, which shows that Londoners (42%) are the most likely to report suspected investment scams to the FCA, compared to other regions.

Last year, the FCA returned over £3m to victims of unauthorised activity, including investment fraud.

In light of this new research, the FCA is calling for more consumers to report suspected investment scams and join the growing number of people speaking out against fraudsters, recognising that there are more bogus firms out there that are yet to be identified.

FCA director of enforcement Mark Steward commented: “We want to say thank you to everyone who is coming forward to help us crack down on investment scams. It’s clear to see that by reporting suspicious investment schemes to the FCA, people are having a direct impact in helping to stop fraudsters exploiting others. But there is still more we can all do and we need the public’s help.

"We are encouraging people to speak out on behalf of their family or local community, just like they would report a crime in their local area.”

AJ Bell senior analyst Tom Selby added: “Whistleblowing is absolutely critical in tackling and shutting down suspected scams, and it’s important savers are aware that by reporting dodgy schemes they could make a difference. Savers can report suspicious activity to a variety of organisations, including the police and the FCA, and by doing so they play a real role in fighting the scourge of investment fraud.

“But the government now needs to step up and keep its end of the bargain by actually introducing previously announced measures to clampdown on pension fraudsters, including a ban on cold-calling. It now seems increasingly likely that the pension freedoms will reach their three year anniversary in April next year without these vital protections being in place.

“The current commitment to introduce these vital measures ‘as soon as Parliamentary time allows’ simply isn’t good enough and at the very least we need a clear timetable for implementation.”

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