With an increasing number of scams being used to defraud savers of their money then our team at Absolute Sense feel that it is appropriate to raise awareness of this issue to our clients. We ask that you spend just a few minutes looking over the information and, where appropriate, pass on this information and tips to your friends and family (particularly the elderly and vulnerable).
Being ScamSmart – the facts
Over 3,000 people were caught up in investment scams in 2015/16, with an average loss of £32,000 (Source: Action Fraud – https://www.fca.org.uk/scamsmart). But the actual figure is probably much higher as most scams go unreported.
Affluent retirees aged over 60 are most likely to be victims. And it’s not just inexperienced investors who are falling victim; savvy investors are falling victim to and are the target for more sophisticated scams.
Scammers use a range of tactics to secure the trust of those they intend to scam. They may use flattery and emotional manipulation to get them onside. They then typically push a time limited offer to get people to invest immediately and without consultation. Their ‘unique investment opportunities’ usually offer ‘guaranteed’ returns at ‘little’ or ‘no risk’ to capital (which is usually not the case).
Real Examples of People Affected by Scams
We have included two stories of innocent investors that have been caught up by a scam.
Videos from The Pensions Regulator and the Financial Conduct Authority
We have included below two useful videos prepared by our own Regulatory Bodies that discuss some of the common scams.