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[ SCAMS ]
Pádraig Floyd says that with scams evolving alongside technology,
even the most sceptical investors are now at risk
Trick and cheat
A
fter more than a decade
of record low interest
rates and continued
uncertainty, people are
desperate for ways to generate a
meaningful return on their savings.
But desperation is a poor bedfellow
for sound investment and the
fraudsters that prey on the unwary
are making a killing.
Some of the scams are as old as
the hills. Ponzi schemes made an
infamous return with the fall from
grace of Bernie Madoff in 2009. Boiler
rooms targeting the unsuspecting
with worthless shares or bonds are
still operating, and successfully, too.
So common is investment fraud,
the FCA, along with Action Fraud
and The Pensions Regulator, have
dedicated websites to help prevent
investors from becoming victims.
FE TRUSTNET
According to data from Action
Fraud, consumers lost £197m
to investment scams in 2018,
an average of £29,000 per victim
– and that is just what was reported.
In 85 per cent of cases, these scams
involved shares and bonds, forex
and cryptocurrencies.
It’s getting better
every day (for scammers)
The old-fashioned cold call remains a
stalwart of the investment scam, but
these crimes are increasingly moving
online. Criminals use credible-
looking websites that make attractive
promises, backed by impressive, but
fake, credentials.
Others sell the concept of above-
average returns based on secure
trustnet.com