The over 55s should take their time to check that investment ‘opportunities’ are legitimate before they hand over their money, says a watchdog, the Financial Conduct Authority (FCA). New research by the FCA has found that more than one in five, 22pc of over 55s and 32pc of over 75s believe they have been targeted by an investment scam in the last three years.
More than half, 55pc of those who have invested in financial products did so on their own, rather than making the decision with family. Some 14pc of over 55s spend little or no time researching financial investment products before handing over money, rising to 26pc of over 75s.
According to figures from the official Action Fraud, on average victims of investment fraud lost £32,000 each last year. Recent pension freedoms and low interest rates offering poor returns on savings are making over 55s an increasingly attractive target for fraudsters, Action Fraud warns.
The new research is part of the FCA’s ScamSmart campaign, helping to protect 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. To avoid being a victim of investment fraud, the FCA advises consumers to:
– Reject unsolicited contact about investments.
– Before investing, check the FCA 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 impartial advice before investing.
Mark Steward, Director of Enforcement at the FCA said: “Making a significant financial investment is an important decision – be prudent, do your homework and be especially on guard if contacted out of the blue by someone you don’t know. Fraudsters are targeting our growing over 55 population because they are more likely to have money to invest. They may pressure you to make a quick decision or try to make you feel stupid for not taking up their bogus offers. No investment decision should be rushed. Be sceptical. Be suspicious. Ask questions and get answers you can verify. And remember, if you receive an unsolicited call about an investment opportunity that sounds too good to be true then it probably is. The best thing to do is hang up.”
And at Greater Manchester Police (GMP), Detective Insp Martin Hopkinson, of GMP’s Serious Crime Division, said: “Greater Manchester Police is aware of a scam email circulating informing the recipient that they have been caught speeding.
“This email is fraudulent and may ask you to give your personal or financial information or attempt to infect your computer with malware.
“Once your computer is infected with malware cyber criminals may be able to access your personal and financial information which could be used to defraud you.
“GMP would never send out correspondence via email requesting payment of fines nor will we ask for your personal and financial information.
“I would urge people to delete any such emails and ensure they always have the most up to date security software. You can report any such activity direct to action fraud at www.actionfraud.police.uk or phone 0300 123 2040.”
