Regulators have also warned of the growing number of scams involving the sale of “carbon credits”, supposedly offering impressive returns.
To highlight the problem of investment fraud, a nationwide campaign has been launched urging the public to “check before they invest” in any money-making scheme. The campaign is being led by Action Fraud, the UK’s national fraud and internet crime reporting centre, which is run by the National Fraud Authority, an executive agency of the Home Office.
According to Action Fraud, UK investors are losing about £1.2bn a year. Research for the campaign found that men aged between 36 and 55 are one of the most likely groups to be ripped off by investment fraudsters. Research carried out in October 2012 for the campaign found that almost half (49%) of those men aged 36 and over who were quizzed, admitted to having given out personal details before checking the credentials of the person who contacted them.
“This group is more likely to take risks through taking part in online deals, promotions and foreign money-making opportunities … The ability to invest large amounts, as well as a tendency to act on impulse, serve to increase the likelihood of these people becoming victims of these scams,” a spokesman said.
Action Fraud has teamed up with industry bodies and regulators, including the Financial Services Authority, to raise awareness among those at greatest risk of falling victim to fraud.
