New research from the Financial Conduct Authority (FCA) has found that 25% of investors who avoided a scam are taking inspiration from Sherlock Holmes to stop scammers in their tracks. It comes as the FCA launches its latest ScamSmart campaign, providing investors with the tools to identify and avoid scams. The FCA consumer helpline has shown a 193% increase in calls to the FCA in the last five years as investors detect investment scam warning signs.
- FCA data reveals £2m was saved in 2022 by beady-eyed investors who spotted the warning signs and reported to the FCA, with calls to the FCA increasing 193% in the last five years.
- Armchair detective investors say finding mistakes in material (34%) and requests for personal details to secure the opportunity (34%) are the most common tell-tale signs.
Two in five (39%) respondents claim that their investigative or research skills are helping them to spot the clues. A further 32% rely on pure gut instinct to distinguish between genuine investment opportunities and potential scams.
The research found that ‘detective’ investors cite finding mistakes (34%) and requests for access to their personal details to secure the opportunity (34%) as the most common tell-tale signs of investment scams. Other warning signs that made investors suspicious included being contacted out of the blue (33%) and pressured to invest before the ‘offer’ ends (26%).
