People in the UK are being increasingly targeted by overseas investment firms not regulated by our financial authorities.

The warning came on Friday from the Financial Services Authority, prompted by a surge of enquiries and complaints they have received in the last 12 months.

Of particular concern are firms who give the appearance of being London based but are in fact located overseas, who contact consumers via unsolicited emails and telephone calls.

Calls to London numbers and mail to London addresses are simply redirected to their location abroad.

Once a problem occurs, or in some cases the firm collapses, consumers find they have no access to complaints or compensation schemes.

FSA Managing Director for enforcement Carol Sergeant warns:

"Dealing with unauthorised firms is like playing Russian roulette.

It is best to call us first and check whether a firm is authorised before you part with your money'"

Even experienced investors have been duped, says the FSA.

One investor who contacted the FSA was sold shares by a company but his share certificate failed to materialize.

When he complained and asked to sell his shares he was told he could not do so unless he agreed to buy further shares in a different company.

Persistent calls over several months and a suggestion that he re-mortgage his house to raise more cash were the last straw.

The FSA provide the following guidelines for protecting yourself against unscrupulous foreign firms:

Do not part with money immediately - insist on time to think

Do not agree to anything until you are happy with the deal

Check with the FSA if the firm is authorised by telephoning 0845 606 1234

Be wary of deals that sound too good to be true

See the latest consumer alert on the FSA

website