We are being attacked from every direction by fraudsters, including, investment scams. Below are details of how to protect yourself from investment fraud.
The data from Action Fraud, the national fraud and cyber crime reporting service, revealed the soaring rate of investment fraud in the last year, with a reported £612,208,663 in losses.
Reports to Action Fraud show that from January 2023 to January 2024, there were 30,130 reports of investment fraud, with the average loss per victim being £25,110.
One of the most common methods used by fraudsters is to pressurise potential investors to make a quick investment decision. A so-called “time-limited” investment offer. The research from the FCA showed that just over half (53%) of the over 55s believed acting quickly can be the key to getting a good deal. This highlights how many could be vulnerable to this trick.
Around a third (34%) said it is best not to discuss investment decisions with others and fewer than half (48%) said they would be likely to seek impartial advice before investing. These attitudes are seized on by fraudsters, who often urge their target to keep the offer a secret, to prevent others from dissuading them from investing.
45% of those aged over fifty-five surveyed agreed that investment opportunities are more attractive if you know of others who have made similar investments. Fraudsters may exploit this by saying that others want in on the deal or have already benefited.
Usually, if you find yourself messaging someone on a social media website about investments, then you are being groomed as the fraudster’s next victim.
Caroline Anstee, Managing Director of Anstee & Co said-
“It pays to be sceptical and cautious before investing money. Certainly, the fraudsters are employing more advanced psychological tactics to persuade victims to invest. Do not rush into anything, take your time. Take independent financial advice from a financial adviser who is registered with the FCA. If in any doubt don’t invest.”
We are Independent Financial Advisers (IFA’s) registered with the FCA. This means, above all, that the advice we offer is unbiased. All our financial advisers have the relevant professional qualifications needed to help you. If you would like a review of your investment why not arrange a meeting today. Also, the first “getting to know you” meeting is at our cost and is without obligation.
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