Barclays Issues Warning to Account Customers: Investment Scams Cause Average Loss of Over £14,000 in 2023

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:

1. Social media thrives on human impulse and scammers often create a false sense of urgency. Pause and reflect before committing to any investments.

2. If an offer seems too good to be true, it probably is. Speak to a qualified financial adviser or family member to get a second opinion. Be wary of taking investment recommendations from a friend without doing your own research.

3. Check to see if the person or organisation contacting you is Financial Conduct Authority-authorised via the financial services register or the FCA's ScamSmart investment checker. (FCA's ScamSmart is designed to help consumers determine whether their investments are scams or truly legitimate.)

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)