The Financial Conduct Authority (FCA) has warned investors about potential scams involving the sale of graphene.
The financial watchdog said it had received many reports from people who have been offered investments in graphene, a man-made metal used in the manufacturer of many electrical goods.
The FCA said it had uncovered the issue after it found evidence of a 'graphene investment firm' on the computers of a suspected boiler room.
"We believe that the same firms that have sold other high risk, dubious products such as carbon credits, rare earth metals and overseas land and crops, are now trying to sell graphene," it said.
"We are yet to see any convincing evidence that there is a viable market for retail investors to make money from investments in rare earth metals."
The FCA said manufacturing companies that use the metals almost always buy them in very large quantities, making it highly unlikely they will deal with small independent retail consumers.
The FCA said it had reports of callers promoting investments in graphene using dubious, high-pressure sales tactics and targeting vulnerable consumers.
"There is a strong possibility of fraud with graphene because it is unregulated and it is difficult to confirm that you have bought the genuine product," it added.
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