Investment fraud reports have doubled in the past year
Investment Fraud reports are set to hit record highs this year, with 8,000 filed already
New data has revealed that investment fraud appears to be on the rise, with 8,000 fraud reports made to the police so far this year.
A Freedom of Information request has shown that 2019 is set for record highs, despite a cold-calling ban which came into force in January. These fraud reports include pension scams.
The surge of reports could be down to individuals being more aware of investment fraud, with investors now reporting scams to the relevant authorities more frequently. It may, however, simply be down to the fact the fraudsters have shifted their focus onto investment-based schemes.
The data was released in the wake of a Times undercover investigation into Action Fraud, the national fraud and cybercrime reporting centre, which saw massive failures in the current system.
The investigation revealed police failing to investigate a number of fraud reports, with managers mocking those who had lost massive amounts of money to scammers, calling them “morons”.
Pensions Scams Industry Group chairwoman Margaret Snowdon said the rise in investment fraud is a "serious matter" and warned:
"The pension scams risk is being seriously underestimated by basing only on reported crimes… We know that people don't report pension scams and potential scams to Action Fraud as the reporting system is not designed to report such matters."
Last year there were 9,398 reported scams according to Action Fraud, in which fraudsters would convince families and small investors to put money into high risk and unsuitable investments.
Scammers will persuade these investors by promising unusually high returns on their savings. The investment often does not exist and/or cannot deliver the promised returns.
How can Smooth Commercial Law help?
At Smooth Commercial Law, our team of experts have extensive experience in dealing with a whole manner of claims that arise from negligent and/or unsuitable financial advice. Our advice would be if you're unsure about any approach received by phone or email, always treat them with suspicion.
If you believe that you are the victim of fraud and loss following an investment there may be ways to recover your losses. Smooth Commercial provide free initial advice so it'll cost nothing to find out your options.