An investment fraud warning has been issued to UK bank account holders amid the Cost of Living crisis. £2.6billion has been stolen through investment fraud in the UK since the start of 2020, according to new research.
The figures, sourced by the Pensions Management Institute (PMI), show 98,525 victims of such scams and victims typically lost an average of £26,773 in a worrying development amid the ongoing Cost of Living crisis across the country.
Robert Wakefield, president of the Pensions Management Institute, commented: “Our research shows that a shocking number of people are falling victim to investment fraud. It is concerning that every year thousands of people are losing millions of pounds to financial scams in the UK. The number and sophistication of investment scams is ever-growing.”
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The Financial Conduct Authority (FCA) noted: “Scammers often call out of the blue. They may also try and contact you via email, text, post, social media, or even in person.” It said: “Scammers might offer you a bonus or discount if you invest quickly, or they may say the opportunity is only available for a short time.”
The FCA said: “Fraudsters often promise tempting rewards, such as high returns on an investment.” Mr Wakefield added: “By maintaining a healthy dose of scepticism and training yourself to spot some common red flags, you may be able to protect yourself and your loved ones from becoming victims.
“Increasing the amount of financial education provided in schools could also help to make people more aware of the risks of investment scams.” Investment scams are very common. Criminals use clever and pushy techniques to trick you into investing in worthless or fake shares.
They might get in touch with you if you have shown interest in their fake firm on social media, or found them using google. Or they might just call you out of the blue.
