Bank: Victims lose £18m to crooks in investment scams
PEOPLE are being warned to watch out for investment scams as the end of the tax year approaches, as HSBC UK said just over £18 million was taken from its customers by fraudsters posing as legitimate providers in 2020.
A total of £18,090,154 worth of losses were reported to HSBC UK by its customers due to investment scams in 2020.
Adverts may look like genuine offerings from a bank or financial services provider, and fake cryptocurrency investment schemes are also an issue, the bank said.
Fraudsters target people by email, social media, or phone and also set up convincing web pages to trick victims into transferring money.
Sometimes they may use the name, registration number and address of an authorised firm, or even clone their website, to promote an investment opportunity.
The new tax year starts on April 6, and investors may be looking for new opportunities.
HSBC UK customers who were tricked into transferring money to investment scammers lost £19,728 on average in 2020.
The bank said it follows practice standards to prevent financial crime and where it identifies a potentially fraudulent payment or scam it takes action immediately. It publishes advice on the latest scams on its website.
James Hewitson, head of wealth management at HSBC UK, said: “We’re aware that fraudsters have used and are continuing to use the Covid-19 pandemic to take advantage of people who may be in an anxious state and facing financial difficulty.
“Customers may see an advert on the web or on social media for an investment scheme that promises low risk for high returns. The general rule is that if an offer seems too good to be true, it probably is.
“Customers can confirm a company is authorised by checking the FCA (Financial Conduct Authority) website or contacting their bank if they’re unsure about an investment.”