Investment Association Reports Almost £10m Lost To Investment Scams

Sophisticated fraudsters have ratcheted up their operations to target retail investors, as incidents of large-scale investment scams nearly quadrupled since July, according to the latest statistics from the Investment Association, the trade body and industry voice for UK investment managers.

As detailed in the official announcement, the total number of reported incidents of these scams stood at approximately 1,175 reported incidents in October, up from around 300 since Investment Association's last warning in July.

The estimated total reported loss to savers from these scams has more than doubled from approximately £4m in July to £9.4m in October with more than 200 people affected.

Investment Association has warned that the scams clone genuine investment management firms through impersonated products, websites and documentation, and then promote the fake products through fake price comparison websites and adverts on social media and search engines. 

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.”