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You can find the current article at its original source at https://www.theguardian.com/money/2016/may/25/older-people-heightened-risk-investment-scam-cold-calls
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| Older people at 'heightened risk' of investment scam calls Older people at 'heightened risk' of investment scam calls | |
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| A sharp rise in the volume of unsolicited calls from investment scammers is putting growing numbers of older people at risk of being conned, Britain’s main financial watchdog has warned. | A sharp rise in the volume of unsolicited calls from investment scammers is putting growing numbers of older people at risk of being conned, Britain’s main financial watchdog has warned. |
| The Financial Conduct Authority said over-55s faced a “heightened risk” of falling victim to unregulated and often fraudulent investment schemes involving everything from land, wine and classic cars to gold, diamonds and art. | The Financial Conduct Authority said over-55s faced a “heightened risk” of falling victim to unregulated and often fraudulent investment schemes involving everything from land, wine and classic cars to gold, diamonds and art. |
| It added that the current low interest rate environment was one of the key reasons why some older people desperate for better returns were adopting “riskier” investment behaviour. | It added that the current low interest rate environment was one of the key reasons why some older people desperate for better returns were adopting “riskier” investment behaviour. |
| The FCA’s ongoing ScamSmart campaign is being supported by Nick Hewer, presenter of the Channel 4 TV show Countdown, who has himself been targeted by unsolicited calls from scammers. | The FCA’s ongoing ScamSmart campaign is being supported by Nick Hewer, presenter of the Channel 4 TV show Countdown, who has himself been targeted by unsolicited calls from scammers. |
| The regulator said its research found that 60% of those who had experienced investment fraud had not reported it “so the problem could be greater than we know”. | The regulator said its research found that 60% of those who had experienced investment fraud had not reported it “so the problem could be greater than we know”. |
| Unsolicited contact via cold calls, letters and emails is the most common technique used by investment scammers. The FCA is urging investors to exercise caution when they are approached by unauthorised firms selling often high-risk – and sometimes non-existent – products. | Unsolicited contact via cold calls, letters and emails is the most common technique used by investment scammers. The FCA is urging investors to exercise caution when they are approached by unauthorised firms selling often high-risk – and sometimes non-existent – products. |
| One of the most popular scams involves investing in land. So-called landbanking companies typically buy agricultural or other land without residential planning permission, divide it into small parcels and sell these to investors. Buyers are led to expect that their slice of farmland will get the go-ahead for housing development, which would see it soar in value. The firms often employ hard-sell tactics, and many of those targeted are older people with a lump sum or an inheritance to invest. | One of the most popular scams involves investing in land. So-called landbanking companies typically buy agricultural or other land without residential planning permission, divide it into small parcels and sell these to investors. Buyers are led to expect that their slice of farmland will get the go-ahead for housing development, which would see it soar in value. The firms often employ hard-sell tactics, and many of those targeted are older people with a lump sum or an inheritance to invest. |
| Last month, the FCA won a case in the supreme court involving a company called Asset Land, which persuaded investors to buy plots of land at “hugely inflated” prices, though it is not clear whether those who tied up their money will get anything back. In a separate case, eight people were convicted last year for their roles in a fraudulent land investment scheme that led to 110 investors losing at least £4.3m. | Last month, the FCA won a case in the supreme court involving a company called Asset Land, which persuaded investors to buy plots of land at “hugely inflated” prices, though it is not clear whether those who tied up their money will get anything back. In a separate case, eight people were convicted last year for their roles in a fraudulent land investment scheme that led to 110 investors losing at least £4.3m. |
| The FCA said its research showed that 40% of respondents who had recently been contacted by a firm they had not heard of, reported a sharp rise in the volume of unsolicited calls – the most common tactic used by investment fraudsters. A similar proportion of people had moved money out of savings into investments as the sustained period of low interest rates had seen over-55s adopting riskier investment behaviour in an attempt to get a better rate of return. | The FCA said its research showed that 40% of respondents who had recently been contacted by a firm they had not heard of, reported a sharp rise in the volume of unsolicited calls – the most common tactic used by investment fraudsters. A similar proportion of people had moved money out of savings into investments as the sustained period of low interest rates had seen over-55s adopting riskier investment behaviour in an attempt to get a better rate of return. |
| Previous studies by the regulator found that those over 65 with savings of more than £10,000 were three and a half times more likely to fall victim to investment fraud compared with the wider population. | Previous studies by the regulator found that those over 65 with savings of more than £10,000 were three and a half times more likely to fall victim to investment fraud compared with the wider population. |
| Some of those questioned were unaware that unregulated products bought through an unauthorised firm offered no protection from the Financial Ombudsman Service or Financial Services Compensation Scheme if things went wrong. | Some of those questioned were unaware that unregulated products bought through an unauthorised firm offered no protection from the Financial Ombudsman Service or Financial Services Compensation Scheme if things went wrong. |
| Hewer, 72, who previously appeared as Alan Sugar’s adviser on the BBC television series The Apprentice, said: “I, too, have been targeted by unsolicited calls from scammers and would advise that if you ever receive a call offering you the investment of a lifetime, just put the phone down, as I did. Go by the rule that if it sounds too good to be true, then it probably is. If the investment was that good, everyone would be investing. If you are still in two minds, go to the FCA website and check the warning list.” | Hewer, 72, who previously appeared as Alan Sugar’s adviser on the BBC television series The Apprentice, said: “I, too, have been targeted by unsolicited calls from scammers and would advise that if you ever receive a call offering you the investment of a lifetime, just put the phone down, as I did. Go by the rule that if it sounds too good to be true, then it probably is. If the investment was that good, everyone would be investing. If you are still in two minds, go to the FCA website and check the warning list.” |