Investment fraud spikes as savers lose £51m to scams: City of London Police

Savers have been scammed out of over £51 million by investment fraudsters between April and June this year, new figures from the City of London Police reveal.

The figures show a 70% spike in investment fraud reported to the authorities when comparing the numbers from the same months in 2017, when fraud accounted for £30m. In 2016 that number was even lower, at £24m.

“Every year thousands of people fall victim to investment scammers, with pensions – usually the most significant financial asset someone will have available to them – often the target,” Tom Selby, senior analyst at AJ Bell, said in a statement.

Pensions scams can have devastating consequences and cold calling is the most common method used to initiate pensions scams, so the government has taken the time to ensure the ban works for consumers,’ Glen said.

The UK government had pledged to introduce a cold-call ban in June as that is the most common method used to initiate pensions scams. The promise has however been delayed, with Treasury stating that the long-awaited rules have been pushed back until autumn.

“Indeed, these recent figures suggest the problem could be getting worse rather than better, yet the Government continues to prevaricate over introducing a ban on pensions cold-calling that was first announced in November 2016.

“While ministers delay, millions of hard-working savers are at greater risk of being targeted by financial fraudsters”, Selby added. [continues…]

ABOUT THE AUTHOR
Pedro Gonçalves
Pedro Gonçalves is Financial Correspondent at International Investment.

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