Barclays Reports 29% Increase in Investment Scams over Past Year
The financial world has been rocked by a staggering uplift of 29% in investment scams over the past year, according to alarming data released by Barclays. These scams have taken a significant toll on the bank's current account customers, accounting for the highest proportion of money lost to fraudsters, with an average claim exceeding £14,000.Barclays Warns of Alarming Rise in Investment ScamsShockingly, 6 out of 10 investment scams now take place on social media platforms, where scammers exploit the ability to promote unverified financial advertisements. Millennials and men are particularly vulnerable, with men's average investment scam claim rising to £16,306 and claims by young people aged 21-40 accounting for nearly half of all investment scams."It's worrying to see such a rise in investment scams – with victims often heartlessly scammed out of large sums of money that they have been saving for their future,” Stephanie Mac Sweeney, the Head of Fraud Strategy at Barclays, stated. She emphasized that while the banking industry works diligently to combat scams, real change can only be achieved by targeting the source of these scams.The average victim of investment scams last year lost more than £14,000, Barclays warned https://t.co/DnBLZktjzv ???? Link below pic.twitter.com/uWSQLHOjXh— Gazette & Herald, Ryedale (@gazetteherald) April 17, 2024Mac Sweeney called upon social media firms to take responsibility and deliver a robust verification system to protect innocent people from falling prey to fraudulent investment adverts.Barclays offered three helpful tips for identifying investment scams: pausing before committing to investments, being wary of offers that seem too good to be true, and thoroughly investigating investment opportunities.FCA Data Confirms Worrying TrendData from the Financial Conduct Authority's (FCA) consumer helpline highlights the severity of the issue, with investment scam-related calls surging 193% in the last five years. However, vigilant investors have managed to save £2 million by identifying suspicious investment opportunities through careful attention to detail. The latest report from the FCA, published two months ago, revealed that the regulator set a new record by issuing 2,286 scam warnings on its public Warning List, an escalation of 21% from the 1,882 warnings issued in 2022. A crucial element of the FCA's strategy involves issuing public warnings about unregulated companies and individuals trying to promote fraudulent investment opportunities.As part of its commitment to the Online Fraud Charter, a voluntary agreement between the government and the tech sector, Barclays urges social media platforms to act swiftly to improve the verification of financial advertisements.The bank remains dedicated to collaborating with its divisions to improve the financial future of its customers, clients, and communities. This article was written by Damian Chmiel at www.financemagnates.com.
The financial world has been rocked by a staggering uplift of 29% in investment scams over the past year, according to alarming data released by Barclays. These scams have taken a significant toll on the bank's current account customers, accounting for the highest proportion of money lost to fraudsters, with an average claim exceeding £14,000.
Barclays Warns of Alarming Rise in Investment Scams
Shockingly, 6 out of 10 investment scams now take place on social media platforms, where scammers exploit the ability to promote unverified financial advertisements. Millennials and men are particularly vulnerable, with men's average investment scam claim rising to £16,306 and claims by young people aged 21-40 accounting for nearly half of all investment scams.
"It's worrying to see such a rise in investment scams – with victims often heartlessly scammed out of large sums of money that they have been saving for their future,” Stephanie Mac Sweeney, the Head of Fraud Strategy at Barclays, stated. She emphasized that while the banking industry works diligently to combat scams, real change can only be achieved by targeting the source of these scams.
The average victim of investment scams last year lost more than £14,000, Barclays warned https://t.co/DnBLZktjzv ???? Link below pic.twitter.com/uWSQLHOjXh
— Gazette & Herald, Ryedale (@gazetteherald) April 17, 2024
Mac Sweeney called upon social media firms to take responsibility and deliver a robust verification system to protect innocent people from falling prey to fraudulent investment adverts.
Barclays offered three helpful tips for identifying investment scams: pausing before committing to investments, being wary of offers that seem too good to be true, and thoroughly investigating investment opportunities.
FCA Data Confirms Worrying Trend
Data from the Financial Conduct Authority's (FCA) consumer helpline highlights the severity of the issue, with investment scam-related calls surging 193% in the last five years. However, vigilant investors have managed to save £2 million by identifying suspicious investment opportunities through careful attention to detail.
The latest report from the FCA, published two months ago, revealed that the regulator set a new record by issuing 2,286 scam warnings on its public Warning List, an escalation of 21% from the 1,882 warnings issued in 2022. A crucial element of the FCA's strategy involves issuing public warnings about unregulated companies and individuals trying to promote fraudulent investment opportunities.
As part of its commitment to the Online Fraud Charter, a voluntary agreement between the government and the tech sector, Barclays urges social media platforms to act swiftly to improve the verification of financial advertisements.
The bank remains dedicated to collaborating with its divisions to improve the financial future of its customers, clients, and communities.
This article was written by Damian Chmiel at www.financemagnates.com.
