New research from the U.K.’s Financial Conduct Authority (FCA) reveals that 32% of U.K. residents aged 75 years and over and 22% of those aged 55 and over believe they have been targeted by an investment scam in the past three years.
The FCA research also reveals that of those who fell victim to a scam, they lost an average of £32,000 each last year.
In addition, 26% of those aged 75 and over and 14% of those aged 55 and over admit to doing little or no research before investing, the FCA research suggests.
The most common form of research is simply checking the company’s website (41%), the report says, while only 27% say they seek out independent professional advice.
“Investment fraudsters and unauthorized firms are known to create highly professional-looking websites to entice victims, reinforcing how other checks need to be done to make sure an investment is genuine,” the FCA’s report says.
The FCA’s research also reveals that people say they spend more time researching other high-cost purchases, such as home renovations, even though they spend less on that than they do on financial products.
“Making a significant financial investment is an important decision — be prudent, do your homework and be especially on guard if contacted out of the blue by someone you don’t know,” says Mark Steward, director of enforcement at the FCA, in a statement. “Fraudsters are targeting our growing over 55 population because they are more likely to have money to invest.”