Context
An article by FSCS Chief Executive, Caroline Rainbird, comments on the worrying increase in financial scams.
Key points to note
- FCA data shows that scams activity is increasing: the FCA issued 80% more scam warnings in 2020 than in 2019.
- FSCS is currently reporting at least one phishing attempt and one fake investment website per day, which it believes is just the tip of the iceberg.
- The true number of scams is likely to be much higher than reported. Research from Aviva in July 2020 found that half of people targeted by scams do not report them.
- There are three main types of scams: investment scams, brand cloning and pensions scams.
- The FCA issued more than 1,000 scam warnings in 2020; 40% of these involved clones or impersonations of legitimate financial services brands.
- Online Safety Bill – user-generated fraud is now included in the draft Bill.
- The FSCS encourages people to access its scams page for signs of scams to look out for and details of the latest FSCS scams it is seeing.
Next actions
None – for information and awareness.