Barclays highlighted a worrying trend where an average of £14,000 is being siphoned off by investment scams in a warning issued to its customers. The bank noted that victims typically lost around £14,313 to such scams last year, with the 21 to 40 age group accounting for nearly half of all reported cases.
The bank explained that victims are often lured by the scammers’ promise of high returns on small investments. The scammers initially pay out using other victims' funds to create the illusion of a successful venture, which leads to greater losses.
Barclays has given crucial advice below to its customers to combat the scams:
Investment scams are becoming increasingly sophisticated, with criminals employing aggressive tactics to lure individuals into buying worthless or non-existent shares, warns Barclays.
They may contact you if you’ve shown interest in their fake company on social media or stumbled across them through a Google search. Alternatively, they may call you out of the blue with the promise of substantial returns in a short period.
(Source: Yahoo Finance)