May 26, 2022

Surge in investment scams targeting younger people.

Victims aged under 45 now account for 70% of reported investment scams, according to new data from Lloyds Bank.

18 to 24 years olds are most likely to fall victim to an investment scam, making up around a quarter (25%) of all cases. Many younger investors said they were lured by fake ads on social media promoting cryptocurrencies and meme stocks.

However, the biggest increase in those reporting investment scams over the last 12 months came amongst 35 to 44 year olds, with cases jumping by more than half (52%) compared to the previous year. Those aged 25 to 34 saw cases rise by almost a quarter (24%) over the same period.

The average amount lost per victim was GBP8,585, down considerably on the previous year (GBP10,217). However, this varies hugely amongst different age groups, with older victims usually losing much more.

Victims aged between 65 and 74 lost an average of GBP30,397, more than any other age group. The amount lost by younger age groups is typically a lot less, with 18 to 24 year olds losing GBP1,433 on average, and those aged 25 to 34 losing GBP2,410.

Analysis also shows that victims typically make three payments to fraudsters over the course of an investment scam.

In the run up to Tax Year End, and with financial markets increasingly volatile, Lloyds Bank is warning would-be investors that scammers will exploit any new opportunities to trick victims into parting with their cash.

Liz Ziegler, Retail Fraud &…

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