A third of over 75s targeted by scammers: FCA

On average, victims of investment fraud lost £32,000 each last year. However one in eight (14%) of over 55s who have invested in financial products (such as stocks and shares) spend little or no time researching them before handing over money. Over 75s, who are most likely to say they have been contacted by an investment scam, are also the group most likely to do little or no research (26%).

Just 27% sought professional, impartial advice, which the FCA is urging consumers to do before investing as part of a new ScamSmart campaign.

Those surveys admitted that more time and effort was being spent checking other high cost purchases, even though the money being spent is less. The average cost of major building work in the FCA's survey was £25,000, compared to the average of £36,000 spent on financial investments such as stocks or shares. Despite this, significantly more people (47%) said that they researched building work carefully and extensively, compared to those researching financial investments to the same extent (38%).

Additionally, over half (55%) of those who have invested in financial products did so on their own, rather than making the decision with family. This is more than any other major financial decision listed such as buying a house, a car or a significant holiday. Fraudsters will often encourage their targets to keep the investment a secret to avoid friends and family dissuading them from investing.

Nick Hewer, who is supporting the campaign, commented: “Duped by cold-callers, fake websites and online adverts, I am outraged at the persistent threat investment scams pose on society, especially those over 55 who are the prime target for these callous criminals. I have been targeted by these scammers myself so I’m not surprised to see how many other people have also been approached. The amount of money that is being lost by victims is extremely worrying, which makes it all the more important that this issue is tackled."