Warning to all investors as large-scale investment scams quadruple since July

Large-scale investment scams have nearly quadrupled since July, new data from the Investment Association has revealed.

The Investment Association said that since its last warning of the risks posed by fraudsters in July, the total number of reported incidents of these type of scams has nearly quadrupled from 300 to 1,175. Picture: Jon Savage

Sophisticated fraudsters have been ratcheting up their operations to target retail investors, the trade body warned.

The scams clone genuine investment management firms through impersonated products, websites and documentation. They then promote the fake products through fake comparison websites and ads on social media and search engines.

The Investment Association said that since its last warning of the risks posed by fraudsters in July, the total number of reported incidents of these type of scams has nearly quadrupled from 300 to 1,175.

Chris Cummings, chief executive of the Investment Association, said: “In a year clouded in uncertainty, organised criminals have sought opportunity in misfortune by attempting to con investors out of their hard-earned savings.

“The investment management industry is working closely with the police and regulators to stop these scams, and is collaborating with our partners in government to close them down and prevent them being advertised in the first place.

“Fraud and scams come in many different disguises. That’s why, as we approach the festive period, we urge savers and investors to be as vigilant as possible to protect their investments and think very carefully about the risks of fraud when making investment decisions.”

Retail investors being urged to be extra vigilant in order to protect themselves from these scams. The Investment Association is also working closely with stakeholders to call on the UK government to bring online investment scams within the scope of the Online Harms Bill before it is passed through Parliament.

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