More than half of Brits have fallen victim to financial scams, with High Net Worth Individuals (HNWIs) facing a 14% increase in targeting over the last nine months, according to a recent Saltus Wealth Index Report.
The study found that 51% of respondents had experienced a financial cybercrime, and among HNWIs, the rate increased to 67%.
Victims lost an average of £9,094, with a total of £118.3bn lost to scams across the UK. The research also indicated that the wealthier an individual is, the more likely they are to be targeted by scammers.
Among those with investable assets of less than £50,000, 36% had been victims, while 73% of those with assets of £1m+ had been scammed.
Saltus warns that the current low return environment provides ample opportunity for scammers to target wealthier individuals by promising higher than market returns.
Scam tactics range from simple offers to invest in crypto or a single market to complex schemes involving the setup of unregulated companies.
Additionally, Saltus cautions that the new Consumer Duty created by the Financial Conduct Authority (FCA) to protect consumers could also be exploited by fraudsters. As the rules go live in the summer months, scammers may impersonate the FCA or other financial service providers, claiming to investigate Consumer Duty violations or requesting personal details for record updates.
Similar scams were seen during the Covid-19 pandemic, with criminals impersonating NHS Track and Trace or the vaccination roll-out. Scammers may also offer a service to review a client’s position for a fee, only to defraud them of that fee.
Mike Stimpson, partner at Saltus, said: “Given half of us have been victims of scams, with many of us losing money, it can be very difficult to tell when you are being targeted, so do remain vigilant at all times, and if in doubt, seek advice.
“The golden rule is – if it seems too good to be true, it probably is. Always check the authenticity of anyone offering an investment opportunity, and never contact a firm from the details it provides you – do your own independent research.
“We all know that professional advice can help you achieve your financial goals, but one of the lesser known – but hugely important – benefits of having a financial adviser is that they can also help protect you from falling victim to financial crime.
“Financial advisers know the markets, they know when something is not credible and they have your best interests at heart and, ultimately, this means they are your best line of defence when it comes to financial scams.”
