The pandemic has arguably created an open season for cyber criminals. The bank’s data reveals a 17 per cent increase in the number of investment scams reported in the last three months. The findings hold sobering lessons for those working in compliance within wealth management.
Barclays has
issued a warning about the rise in scams, with investment
frauds often accounting for the highest average value
variety.
With £15,788 lost on average to investments scams in the last
quarter, investors are enticing options for fraudsters, the bank
said. Its research showed that three in 10 (32 per
cent) of investors admit that they would be willing to go with an
investment or savings provider that they had never heard of if
they thought the returns would be higher than their existing
provider. A further fifth (21 per cent) were unsure,
indicating that they could potentially be convinced.
“Investing should generally be a very measured activity and
people who are looking to invest their money will often do a lot
of research before making their decision, or at least ask for a
second opinion. However, scammers are experts at exploiting the
fact people want to grow their assets, and that we can sometimes
put our better judgement aside for a high return opportunity,”
Barclays’ chief behavioural scientist, Dr Pete Brooks, said.
“Fraudsters really are expert social manipulators and prey…
