- The Financial Conduct Authority (FCA) received nearly 5,000 reports of fake FCA scammers in the first six months of this year
- There were 480 people who fell victim to these scams during the period
- Almost two-thirds of reports came from those aged 56 and above
- A worrying ‘double dip’ trend is also emerging, where victims of scams are targeted a second time with offers of help to recover funds already lost
- Five ways to avoid fake FCA scammers
Charlene Young, senior pensions and savings expert at AJ Bell, comments:
“This new warning from the FCA makes for grim reading, with financial scammers now impersonating the regulator itself. The figures represent the total number of reports to the FCA where people realise they’ve been targeted and are willing to make a report. However, the true volume of victims and attempts will likely be much higher.
“Depressingly, the most vulnerable people continue to be those who are most actively targeted. We saw financial vulnerability particularly exposed by fraudsters during the worst of the Covid pandemic, and the cost-of-living crisis that followed it.
“Impersonation schemes are particularly attractive to these bad actors. One common technique involves a call out of the blue, with fraudsters claiming to be from the FCA and having recovered funds from cryptocurrency wallets opened in the target’s name without their knowledge. With the promise of a windfall, the scammers will then try to persuade people to hand over sensitive bank information including account access and PIN details.”
‘Double dip’ schemes target victims more than once
“These schemes can also get fraudsters a second bite of the scam cherry. The FCA has singled out a practice it calls ‘pig butchering’, where victims are targeted using a romantic or other connection which lays the groundwork for a long-term investment scam to ‘fatten them up’. After money has been handed over, fraudsters then move on to impersonating the FCA and offer to help their victim recover what they’ve already lost.
“While people of all ages can fall victim to scammers, those who are able to access their retirement pot – potentially the biggest asset they own – will inevitably be a prime target. In fact, almost two thirds of the reports made to the FCA in the update came from over 55s.
“The best way to avoid becoming a scam victim is to know the tricks they use and not hand over your money in the first place. We’ve listed five things people can do to protect themselves from these scams.”
Five ways to avoid fake FCA scammers
There are a number of simple things you can do to protect yourself:
- Be suspicious of unsolicited calls, texts, emails or unregulated offers on social media. Scams often start with a call, text or email out of the blue, including offering help with recovering funds that have been compromised. Although the FCA has accounts posting information on selected social media channels, it does not use WhatsApp or other messaging services or automated call systems to contact people.
- Never send cash or share sensitive banking information. The FCA would never ask you to send money or bank account statements, online passwords or PIN numbers.
- Check that any contact from the FCA is genuine. Scammers impersonating the FCA often use ‘call spoofing’ to make certain numbers appear in your caller ID. If you’re at all suspicious on a call then you should simply hang up. You can check whether contact from the FCA is genuine by calling 0800 111 6768.
- Report your scam concerns. If you believe someone is trying to impersonate the FCA you can call 0800 111 6768 or use the online contact form to report and help protect other investors.
- Beware other impersonation scams. Fraudsters often also claim to be from government organisations or services. This might include HMRC, the Financial Ombudsman Service, or the Financial Services Compensation Scheme.
