Victims of Investment Scams Lost Average of £29,000
Investment scam victims lost an average of more than £29,000 in the year 2018 as per data from Action Fraud. Financial Conduct Authority (FCA) is calling for investors to increase supervision in the light of the £197m investment scam.
As per Action Fraud the reported amount lost by the investors during the year 2018 was £197,465,740 from total of 6759 complaints/ reports.
According to information gathered from the FCA call center, most of the reported scams included investments in bonds, forex, shares, and crypto currencies by unauthorized firms by the Financial Conduct Authority. Together, these reported investment scams accounted for about 85 per cent (4,996 reports) of all the reported investment scams in the year 2018, which totaled to around 5,884 reports.
Potential investors are warned to be observant during the first quarter of 2019 as this is the time period in which many look to make investment before the end of the tax year.
The FCA has said that profile of scams involving investments is changing as more people are being targeted and trapped online. These days, Fraudsters get in touch with people through e-mails, websites and social media platform, such as Instagram and Facebook.
Executive director of enforcement and market oversight at FCA, Mark Steward, said that fraudsters are becoming more and more professional as they are using fake credentials and websites to make themselves look real and legitimate.
‘The FCA is trying their best to help protect the people from this threat of fraudsters. Last year, we issued more than 360 warnings about potentially fraudulent firms.
The FCA has released a video to provide the public with awareness regarding the most common tactics and strategies used by scammers.The FCA is urging the public to be more observant when making investments and to watch out for six warning signals: unexpected contact; social proof; time pressure; false authority; unrealistic returns; flattery.
- Big Four Firms Dominate the List of Cyber Security Recruiters
- Accountancy bodies Working Together Against Businesses Involved in Money Laundering
- Xero Reports Revenue Growth of 36% in the FY 2019
- FASB Provides Financial Institutions with Fair Value Option to Ease through the CECL Transition
- Kraft Heinz Reveals $181m in Accounting ‘Misstatements’
- KPMG Hit with a £6m over Audit of Lloyds Syndicate
- Property Dealer Banned over £5.6m Accounting Failure