HSBC stated that investment scams were leading to the biggest losses for its customers than any other type of fraud. This type of scam involved customers being convinced to buy fake bonds or cryptocurrency. Usually, criminals begin an investment scam with a message or phone call which tells the customer of an opportunity that is “too good to miss”.
Fraudsters will also contact their victims over the course of a few months or sometimes years to try and get as much money from them as possible.
The bank said that it was receiving reports of scams that involved trading in genuine companies however they are being carried out through a fraudulent intermediary.
Victims will be shown their investments or returns through an app or website which is often created by the fraudster but the customer will then eventually lose contact with this fake intermediary.
By this point, people could have possibly paid thousands into the schemes but will have no returns to show for it.
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HSBC UK’s head of fraud, David Callington, “With the cost of living sky high, it’s no surprise people are lured in by schemes promising low risk for high returns.
“The general rule is that if an offer seems too good to be true, it probably is. Customers can check if a company is authorised via the Financial Conduct Authority (FCA) website – if it’s not regulated we wouldn’t recommend investing.”
Outside of investment scams,…
