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BBC Article: Average Victim Loses £45k in Investment Scams.

As per the title, an article about investment scams:

https://www.bbc.co.uk/news/business-55816059
Think first of your goal, then make it happen!
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Comments

  • Albermarle
    Albermarle Posts: 24,607 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    This was the quote from the first victim .
    One victim, called Janet, said: "After searching the internet for high-return bonds, I received a call the next day about investing in student accommodation'
    So she invested £40K ............
  • barnstar2077
    barnstar2077 Posts: 1,503 Forumite
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    edited 27 January 2021 at 11:20AM
    This was the quote from the first victim .
    One victim, called Janet, said: "After searching the internet for high-return bonds, I received a call the next day about investing in student accommodation'
    So she invested £40K ............
    The trouble is that many people have not met the kind of evil in real life that is waiting for them online round every corner, so they are too trusting and take people at face value.  I have said many times before that while they teach people English and maths in schools, they should also be teaching about credit cards, mortgages and pensions and scams too. 
    Think first of your goal, then make it happen!
  • A_T
    A_T Posts: 969 Forumite
    Part of the Furniture 500 Posts Name Dropper
    does this include people who give out their online banking login details?
  • This was the quote from the first victim .
    One victim, called Janet, said: "After searching the internet for high-return bonds, I received a call the next day about investing in student accommodation'
    So she invested £40K ............
    The trouble is that many people have not met the kind of evil in real life that is waiting for them online round every corner, so they are too trusting and take people at face value.  I have said many times before that while they teach people English and maths in schools, they should also be teaching about credit cards, mortgages and pensions and scams too. 
    A_T said:
    does this include people who give out their online banking login details?
    The son of my fathers friend actually fell for a Nigerian  bank scam and lost £30k.....then 5 years later was fleeced again for £2k......he was well educated but wet behind the ears
  • eskbanker
    eskbanker Posts: 33,563 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    This was the quote from the first victim .
    One victim, called Janet, said: "After searching the internet for high-return bonds, I received a call the next day about investing in student accommodation'
    So she invested £40K ............
    The trouble is that many people have not met the kind of evil in real life that is waiting for them online round every corner, so they are too trusting and take people at face value.  I have said many times before that while they teach people English and maths in schools, they should also be teaching about credit cards, mortgages and pensions and scams too. 
    But the rest of Janet's quote, included in full at https://www.fca.org.uk/news/press-releases/fca-scamsmart-warning-clone-firm-investment-scams, is:

    I’m quite savvy minded when it comes to money – being a finance officer I thought I was a confident investor and thought I knew how to spot the warning signs of a scam. After searching the internet for high-return bonds, I received a call the next day about investing in student accommodation.

    'I found legitimate details of the company online - everything seemed genuine, so I invested. A few months later, after a couple more investments, I started to get a bit worried - I still hadn’t received confirmation of the latest investment. I tried to call the contacts I had been speaking to, but the numbers were invalid. It was clear I had been scammed. I had lost £40,000. I really thought I’d be able to spot a scam, but now I know they can be far more sophisticated than I had ever imagined


    A_T said:
    does this include people who give out their online banking login details?
    No - https://www.ukfinance.org.uk/system/files/Fraud-The-Facts-2020-FINAL-ONLINE-11-June.pdf is quite a comprehensive illustration of the different types of financial fraud, and the subject of this thread is the investment scam category, explained on page 50, whereas you're referring to unauthorised remote banking fraud (page 34 onwards).
  • Langtang
    Langtang Posts: 432 Forumite
    Part of the Furniture 100 Posts Name Dropper Photogenic
    These are the kind of things that frighten me as a brand new investor, with regard to online investing. With web addresses easily copied now I'd be cautious, to the point of resisting, to invest. I know some people on these boards say DIY is the (cheapest) way to go, but to my mind c1% to an IFA vs 100% to a scammer is a no brainer.

    I'm a bit like Janet, I like to think I am savvy in lots of ways (and I know when the Indian guy who phones me is called Phil Jones, that its a red light - you'd think they'd have cottoned on by now)

    With my first steps into investing just around the corner, this is the last thing I want to hear...
    It'll be alright in the end. If it's not alright, it's not the end....
  • eskbanker
    eskbanker Posts: 33,563 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Langtang said:
    I know when the Indian guy who phones me is called Phil Jones, that its a red light - you'd think they'd have cottoned on by now
    Yes, you'd think they'd choose 'Harry Maguire' or 'Marcus Rashford' if they're wanting to latch onto names with some credibility.... ;)
  • Alexland
    Alexland Posts: 9,804 Forumite
    Seventh Anniversary 1,000 Posts Photogenic Name Dropper
    dunstonh said:
    It is also a shame that when scams are identified and warned about on sites like this, that the board then suffers solicitor letters demanding posts get removed or they will take action.
    Yes it's very difficult when that happens. Especially if the solicitors claim the company is just an innocent victim of cloning but you still suspect that they are just a scam. Just talking in general terms of course no particular recent example come to mind.
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