The Financial Conduct Authority (FCA) has urged investors to thoroughly check the legitimacy of any investments they make, after it was found that almost a fifth of over 55s had been hit by fraudulent investment scams.
On average, victims of investment fraud lost £32,000 each last year; however recent pension freedoms and low interest rates offering poor returns on savings are making over 55s in particular a prime target for fraudsters. The FCA have found that 22 percent of over 55s with above average incomes suspect they were targeted by a fraudulent investment scam in the past three years, rising to a 32 percent of those aged 75 and over.
The figures also suggest that those over 55 are likely to spend less time researching investment products before taking the plunge. According to the FCA’s research One in eight of over 55s who have invested in financial products (such as stocks and shares) spend little or no time researching them before handing over money.
The new research is part of the FCA’s ScamSmart campaign, which is designed to help to consumers from investment fraud. The campaign features an interactive tool, the FCA Warning List, that helps investors find out more about the risks associated with an investment, and check a list of firms the FCA knows are operating without its authorisation.
Apprentice star Nick Hewer, who has himself been target by fraudsters, supports the campaign. He said:
“Duped by cold-callers, fake websites and online adverts, I am outraged at the persistent threat investment scams pose on society, especially those over 55 who are the prime target for these callous criminals. I have been targeted by these scammers myself so I’m not surprised to see how many other people have also been approached. The amount of money that is being lost by victims is extremely worrying, which makes it all the more important that this issue is tackled.
“If you are contacted by someone offering an investment out of the blue, just put the phone down. The FCA Warning List is a fantastic resource for those who are unsure about an investment offer – in a nutshell, check, check and check again!”