The national fraud and internet crime reporting centre has launched The Devil’s in Their Details campaign with the government and the private sector to advise investors on how they can avoid such scams.
The group explained that many cases involve investors handing out their personal details before checking the credentials of those who have contacted them. The average amount lost in investment scams is £20,0000.
Peter Wilson, director at the National Fraud Authority, which runs Action Fraud, said: “Some of the biggest personal fraud losses reported to police are from investors, a group that we think of as savvy and entrepreneurial.
“Our intelligence shows that amounts ranging between £10,000 to over £1m are being handed over to fraudsters by victims. This loss is likely to be permanent and will not only deal a life-changing blow to the victims, but possibly their family and their business.”
Research commissioned by the group found that men aged between 36 and 55 are most likely to fall victim to investment fraud. This group is more likely to act on impulse and take part in online deals, promotions and foreign money-making opportunities.
One victim, who lost more than £1.5m to investment fraud, said: “When a high-flying son of a family friend approached us about investing in a group of companies he was involved in we had no reason not to trust him.
“We invested a small amount of money first and were regularly updated on how our money was growing – and were even able to take some money back out of the company; all increasing the authenticity and resulting in us continuing to invest.
“When we tried to take all of our money out, we were fobbed off with excuses. I grew increasingly ill with the stress and the fear of losing the family home. My doctor advised me to take some time to get better before confronting my money situation.
“A year later, one of the companies in this group no longer existed – the directors had apparently all moved on. In total I lost over £1.5 million to this scam and I’m still trying to recover this – I would urge other people to report as soon as they have a suspicion that their investment isn’t for real.”
Action Fraud has partnered with groups such as the FSA, Financial Fraud Action UK, the National Fraud Intelligence Bureau, City of London Police and the Home Office.
