We are being attacked from every direction by fraudsters, including, investment scams. Below are details of how to protect yourself from investment fraud.

Stopping 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.

What to look out for with Investment Fraud.

Below are some of our tips on how to protect yourself from the tactics used by fraudsters-

• Offering lucrative returns above the market rate and downplaying the risks of the investment
• Using flattery to make potential victims feel good, such as praising them for being such a knowledgeable investor.
• Saying the deal is only available to the target and asking them to keep it a secret.
• Saying that other clients have invested or want in on the deal (known as “social proof”).
• Putting you under pressure to invest in a time-limited offer.

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.

Lines of defence specifically for an investment client.

• Reject unsolicited contact about investments
• Before investing, check the Financial Services Register to see if the firm or individual you are dealing with is authorised and check the FCA Warning List of firms to avoid.
• Get independent financial advice before investing.

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.”

How Anstee & Co can help you stay financially safe.

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.

Our Head Office is located at-

• Kettering, Northamptonshire

Additional our advisers live and make use of meeting rooms in-

• Bedford, Bedfordshire
• Market Harborough, Leicestershire
• Northampton, Wellingborough and Thrapston all in Northamptonshire.

Also, we are make full use of video conferencing facilities such as-

• Zoom
• Microsoft Teams
• Skype
• Facetime

We can also arrange a conference call. The choice is yours. There is no need to visit an office as all work can be handled remotely.

If you have any thoughts or views on this article, “Investment Fraud. What to look out for.”, then we would love to hear from you.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).