The public has been warned to be vigilant following a new report that shows the number of people relieved of their savings by ‘investment scams’ has increased by value for the first time since 2021, reaching £144 million.
Such investment scams can involve gold and other high-value items, but many are linked to property developments, sub-leting activity and land-banks or ‘plots for sale’.
Trade body UK Finance, which has published its findings on the level of scam activity across the nation, says investment scams and other types of fraud have become the most common way people lose their money to criminals.
on the level of scam activity across the nation, says investment scams and other types of fraud have become the most common way people lose their money to criminals.
“In an investment scam, a criminal convinces their victim to move their money to a fictitious fund or to pay for a fake investment, the organisation, which represents lenders in the UK, says.
“The criminal will usually promise a high return to entice their victim into making the transfer.
“These scams include investment in items such as gold, property, carbon credits, cryptocurrencies, land banks and wine.
“The criminals behind investment scams often use cold calling to target their victim and pressurise them to act quickly by claiming the opportunity is time limited.
“Adverts on social media usually offering unrealistic returns, and letters are also used heavily in investment scams.”
Such property investment scams involve large amounts of money as LandlordZONE often highlights, as well as sub-letting scams, which are often discussed on our Forums.
To report an investment scam in the UK, victims should first contact their bank and then report the scam to Action Fraud. Additionally, they can report the scam to the Financial Conduct Authority (FCA).
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