Skip to content
International Adviser
  • Contact
  • Login
  • Subscribe
  • Regions
    • United Kingdom
    • Middle East
    • Europe
    • Asia
    • Africa
    • North America
    • Latin America
  • Industry
    • Tax & Regulation
    • Products
    • Life
    • Health & Protection
    • People Moves
    • Companies
    • Offshore Bonds
    • Retirement
    • Technology
    • Platforms
  • Investment
    • Equities
    • Fixed Income
    • Alternatives
    • Multi Asset
    • Property
    • Macro Views
    • Structured Products
    • Emerging Markets
    • Commodities
  • M&A Deals
  • Best Practice
    • Best Practice News
    • Best Practice Awards
  • Media
    • Video
    • Square Mile Research
  • My IA
    • Events
    • Directory
    • IA Tax Panel
    • IA Intermediary Panel
    • About IA

ANNOUNCEMENT: Read more financial articles on our partner site, click here to read more.

SIGN IN INTERNATIONAL ADVISER

Access full content on the International Adviser site, access your saved articles, control email preferences and amend your account details

[login-with-ajax]
Not Registered?

‘Detective’ investors blocked £2m of scams in 2022

By Robbie Lawther, 21 Feb 23

39% claim that their investigative and research skills are helping them spot signs of fraud

The Financial Conduct Authority (FCA) has found savvy Brits blocked £2m ($2.4m, €2.3m) of scams in 2022 by spotting warning signs and reporting them to the regulator.

Calls to the FCA’s consumer helpline have increased by 193% in the last five years – likely a result of rising awareness of scams and increased scam activity.

The FCA’s research also found that a quarter (25%) of investors who avoided a scam are taking inspiration from Sherlock Holmes to stop scammers in their tracks. Some 39% of respondents claim that their investigative or research skills are helping them to spot the clues. A further 32% are relying on pure gut instinct to distinguish between genuine investment opportunities and potential scams.

It found that ‘detective’ investors cite finding mistakes (34%) and requests for access to their personal details to secure the opportunity (34%) as the most common tell-tale signs of investment scams.

Other warning signs that made investors suspicious included being contacted out of the blue (33%) and being pressured to invest before an ‘offer’ ends (26%).

Of the 1,036 investors who have avoided investment scams the FCA surveyed, a third (33%) came across the opportunity via email, while 25% received a personal phone call. Once investors realised the opportunity was fraudulent, 42% warned family and friends, while a further 27% posted on social media to warn others.

Savvy Brits

Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Scammers are becoming more and more sophisticated, coming up with different tactics, such as impersonation texts or calls, and using the cost-of-living pressure as a way to tempt investors into false opportunities. Once money has been lost in this way, it’s difficult to get back, so if something seems too good to be true, it probably is.

“It’s great to see so many investors being able to spot the signs of a scam, and helping others to do the same. You don’t need to be a Sherlock Holmes to spot scams. Our Scamsmart advice and tips together with the FCA’s warning list provides all the clues you need to sort the genuine investments from the fraudulent ones.”

Tom Selby, head of retirement policy at AJ Bell, added: “It has never been more important for savers and investors of all ages to be on their guard to the risk of scams. The cost-of-living crisis is straining the budgets of millions of households, increasing financial vulnerability and providing an ‘opportunity’ for fraudsters to tempt people to part with their hard-earned savings.

“The good news is that Brits are getting increasingly savvy when it comes to avoiding scams, spotting the tell-tale signs of dodgy investment ‘offers’ and steering clear of anything that doesn’t pass the smell test.

“While anyone can be the victim of financial fraud, pension savers over the age of 55 who can access their retirement pot flexibly are an obvious target. In many cases, someone’s pension will be the most valuable financial asset they have, with the possible exception of their house.

“If someone contacts you out of nowhere and tries to convince you to withdraw your pension and invest it elsewhere, you should be extremely wary. You’ll not only potentially pay a huge unnecessary tax bill, but you could also be putting your retirement at risk.

“In the worst-case scenario, the investment could be fraudulent and you might end up losing everything. You wouldn’t gamble your house at the casino, so why would you even contemplate taking risks like this with your retirement?”

Tags: AJ Bell | FCA | Fraud | Scams

Share this article
Follow by Email
Facebook
fb-share-icon
X (Twitter)
Post on X
LinkedIn
Share

Related Stories

  • Industry

    II Connect 2025: Video highlights

    Latest news

    II Connect 2025: Highlights

  • Companies

    AWIM adds Head of International Wealth Management

    Companies

    Canada Life owner announces reshuffle at top of UK, Europe business


NEWSLETTER

Sign Up for International
Adviser Daily Newsletter

subscribe

  • View site map
  • Privacy Policy
  • Terms and Conditions
  • Contact

Published by Money Map Media – part of G&M Media Ltd Copyright (c) 2024.

International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.