A third of over 75s targeted by investment scams, as FCA urges consumers to take the time to check

Investment Scams Targeting Victims Over 75

Several people in the UK received nuisance phone calls during the lockdowns. The cold callers targeted vulnerable older adults and offered huge insurance packages and fake products, impersonating authorised representatives of reputable organisations. 

The NTS introduced the call-blocking pilot scheme in 1000 homes, where it found around 35 per cent of the calls made to older people were fake, and such calls increased by 250 per cent in October 2020 compared to April 2020. 

In addition, many older people were targeted by unauthorised institutions that pressured them to invest in multiple schemes. Most victims did not research the offers, and their decision was solely based on the website's look and overall presentation. 

They are the ones who do not take any professional advice before making a decision, and they do not conduct the verifications recommended by the FCA. 

Many over 70 have been targeted by bogus charities, vaccine representatives or teams collecting donations. Some elderly pensioners' were asked to log on to their online account and secure a transaction. 

Impersonators acted as bank officials asking the customers to give access to their account codes and transfer funds, and people in the safety of their homes could not see any threat.

Police and banks released an advisory, asking people not to engage with cold callers and hang up the phone if they could not identify the caller. 

Such groups mostly target older people because they have more savings and can be pressured into making a quick decision. Also, they often trust the caller and believe in the offers made by a professional-looking website. 

How To Protect Yourself?

• Avoid/reject unsolicited calls from unknown firms offering investment schemes. 

• Check the FCA register when you get a call from such firms to know if you deal with authorised or fake organisations. 

• It would be best if you did not rush into making a decision involving transferring funds into another account. Always ask questions and verify all the details. Get impartial advice from the experts in the field.

• Also, the bank officials never call account holders to get their account details, PIN or other codes, and they cannot request the customers to transfer or withdraw money. 

• Some banks have been advised to introduce a system where older customers can nominate a loved one to receive and manage the text messages and make payments or do bank transfers on their behalf. It can be helpful to those who are living with dementia and other health issues.   

• Some models of bank transfers are recoverable, which can be opted to get refunds in case of such losses.

• Banks have been asked to identify vulnerable users, and if they suspect a transaction, they can reschedule it for a later date. Then, after getting approval from a trusted friend or family member, they can conduct the transaction. 

The older victims are asked to make purchases by debit or credit card to be in a position to cancel a suspicious transaction and claim a refund. However, if someone else uses the card to purchase without authorisation, the card provider is liable to pay for the losses. 

Some older victims are concerned about physical harm and fear the potential consequences of the condition where the scammers know where the target lives. 

Some said they had door-knocks where unknown people offered home improvement services who accepted to do some work but disappeared after getting the money. 

Many victims post a warning on social media, install a security camera at their homes, and post warning pictures on their pages to warn their friends and neighbours. 

How To Avert A Loss?

Regularly check if you have an elderly relative or friends and ask if they met anyone who knocked at the door or left notes. 

Avoid buying things from doorstep sellers, and do not meet people who do not have an appointment. 

If you suspect anyone, report it to the police.