The devil is often in the detail and investors are being urged to think twice before making an investment that seems to be just too good to be true.
Because, says Action Fraud, the deal is probably a scam and they’ve launched a new campaign to raise awareness of investment fraud.
Action Fraud is the UK’s fraud and internet crime reporting centre and they say around £1.2 billion is being conned from British investors every year.
To combat this, they say, investors should make some inquries to check who they are giving their money to.
Peter Wilson, a director of Action Fraud, said some of the biggest personal fraud losses that are being reported to police come from investors – a group he says which is usually associated with being a bit ‘more savvy and entrepreneurial’ than most people.
Investors hand cash to fraudsters
He added: “Victims are handing over amounts ranging from £10,000 to more than £1 million to fraudsters and, in many cases, these are life-changing sums which affect their family and their business.
“If you are being asked to invest a large sum into a venture, the investor should take a step back and think about whether the opportunity is just too good to be true – because it probably isn’t.”
Action Fraud is run by the National Fraud Authority and their figures reveal that just under half – 49% – of men aged over 36 admit to handing over personal information before finding out who they are speaking to.
They also say that only 57% of people are confident they can spot a fraud from a real investment.
These figures have prompted the government and private sector to come together to advise investors of the precautions they can take to avoid scams.
Victims too embarrassed to report the crime
The campaign is being backed by Financial Fraud Action UK which represents banks and the financial services industry, along with the Financial Services Authority (FSA).
The FSA says the fraud situation is much worse than official figures suggest because, they say, their figures show that only 10% of frauds are ever reported. Most victims are too ashamed or embarrassed to report the crime.
The also say that the actual amounts being lost to fraud are much higher than many believe.
There’s more information at the Action Fraud website which has the list of checks people should make and also a video illustrating what might happen to those who don’t carry them out – https://www.actionfraud.police.uk/thedevilsintheirdetails
