Lanistar
- The UK’s financial watchdog warned Wednesday that Instagram-hyped fintech startup Lanistar wasn’t authorized to operate in the country, and could be a scam.
- Lanistar claims its upcoming debit card is “the world’s most secure card,” and can link up to eight bank accounts.
- Similar claims are echoed in paid Instagram promotions by Belgian footballer Kevin De Bruyne and Luis Suarez, who are among the thousands of influencers backing the company.
- The Financial Conduct Authority (FCA) said Lanistar “is targeting people in the UK,” and advised consumers to “be especially wary of dealing with this unauthorised firm.”
- Lanistar rejected the FCA’s statement, saying: “Legal and regulatory compliance are central to Lanistar’s business.” It would request that the FCA removes its notice, it said.
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Fintech startup Lanistar has paid social media influencers such as soccer star Kevin De Bruyne to hype up the “world’s most secure” bank card to millennials — but it could be a scam, the UK’s financial services watchdog warned Wednesday.
The company claims its card uses “polymorphic” technology to make consumers “untouchable” by hackers.
Similar claims are echoed in paid Instagram promotions by soccer stars Kevin De Bruyne and Luis Suarez, who are among the thousands of influencers backing the company. Others include model Demi Rose and Cristiano Ronaldo’s girlfriend, Georgina Rodriguez.
The company’s branding has also adorned Bugatti supercars in videos by Aleem Iqbal, also known as Lord Aleem, the millionaire CEO of a luxury car company who has more than 600,000 Instagram followers.
Lanistar is founded by entrepreneur Gurhan Kiziloz, who described himself in a June interview with Top Business Tech as “the long awaited game-changer.” He is targeting a £1 billion ($1.3 billion) valuation for the firm.
The brand has more than 70,000 followers on Instagram.
Lanistar claims its upcoming debit card Chome Volt can link to up to eight bank accounts to help customers better manage their finances.
But the Financial Conduct Authority (FCA) said in a short statement that Lanistar "has been providing financial services or products in the UK without our authorisation."
Lanistar denies wrongdoing.
The FCA said Lanistar "is targeting people in the UK," and advised consumers to "be especially wary of dealing with this unauthorised firm."
"Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us," the FCA said. "However, some firms act without our authorisation and some knowingly run investment scams."
Business Insider has contacted the FCA for further comment.
In a statement Wednesday, per the Financial Times, Lanistar said the FCA was wrong, and that it would request the scam notice be taken down.
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"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," it said.
"We will be partnering with firms that are authorised by the FCA to provide financial services or products. We are in the process of contacting the FCA to clarify the position and will be requesting that the notice is removed," it added.
In June, Lanistar partnered with Mastercard, the world's second-largest global payments processor. Mastercard said Lanistar "hopes to tap into the millennial and Generation-Z, 18-35 market, attracting customers who seek aspirational and lifestyle brands to enrich their daily lives," per the Financial Times.