Action Fraud Warns Of A Surge In Investment Fraud Reports During the Lockdowns

From September 2019 to September 2020, Action Fraud received over 17K cases of investment fraud, where the total loss made by investors was £657.4m. It suggests growth of 28 per cent compared to the last year's same duration, and the data also found that the number of reports progressed in the months of lockdown- 

May, June, July, August and September 2020. It is speculated the phase of the coronavirus lockdown must have created job loss and financial difficulties; also, the fall in interest rates shows the economy continues to suffer the consequence of the pandemic.  

Those working from home or those who have lost their jobs are trying to organise their finances during the lockdown, and they may find the offers from investment firms profitable. 

Financial ambiguity during the lockdown has created huge risk factors as people spend more time exploring lucrative money-making schemes on the Internet. They find such offers attractive and sometimes supported with a money-back guarantee or other security alternatives. 

Most banks are trying to tell people about such scams, as the lockdown has made people spend much time online trying to apply their time to earn more. People are not only tricked into financial scams but are also losing money on travel scams. 

Some sites offer well-known subscription schemes to trick people into giving cash and personal information. These criminals may pose as representatives of government-backed health test schemes and trace services to collect victims' details.

Some are preying on vulnerable ageing investors, but law enforcement agencies are working hard to assist the investors in tackling it and empowering people to identify a scam. 

Tips To Avoid A Scam

• Be aware of investment deal calls coming out of the blue. To make such investments, one can get email messages, cold calls, or social media messages.

• Do not rush to invest. Any legitimate firm cannot pressure the client to make a transaction or commit to any deal on the spot. Instead, you should always contact your friends, get expert advice, research, and decide on any such deal.

• Go through the FCA register to find out if the company is regulated. 

• One can pay to get professional advice from an expert to make important financial decisions, especially when putting money into high-risk investment schemes offering higher returns.