Other Citywire websites
Stay connected:

View the article online at http://citywire.co.uk/new-model-adviser/article/a636685

Investment scams cost UK £1.2bn a year

by Daniel Grote on Nov 23, 2012 at 07:57

Investment scams cost UK £1.2bn a year

Investment scams cost the UK an estimated £1.2 billion a year, according to national fraud and internet crime reporting centre Action Fraud.

It surveyed 500 men aged 36 and above, finding that almost half admitted to giving out personal details before checking the credentials of the person who contacted them. Only 57% said they were confident they could spot frauds from genuine offers.

It said that investment scams often went unreported, pointing to Financial Services Authority estimates that only 10% are reported.

Peter Wilson, director of the National Fraud Authority, said: 'Some of the biggest personal fraud losses reported to police are from investors, a group that we think of as savvy and entrepreneurial. Our intelligence shows that amounts ranging between £10,000 to over £1 million are being handed over to fraudsters by victims.'

1 comment so far. Why not have your say?

David Craik

Nov 23, 2012 at 09:00

Hardly surprising!

Having reported 3 scams or potential scams to the FSA and not had any response, I am surprised the number is so low. Yet another failure of regulation. What do they do with their £500m budget?

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Opportunities emerge as production moves back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

A spotlight on Alastair Mundy


Alastair Mundy met Citywire's Daniel Grote at the London Stock Exchange Studios for a detailed interview about the Investec Cautious Managed fund.

More about this article:

What others are saying

Archive


Read more...

Lucky escape: when firms avoid FCA fines

by Jun Merrett, Michelle Abrego on Jul 24, 2014 at 15:31

Sorry, this link is not
quite ready yet