Losses of British investors amounted to almost 200 million pounds in the 2018 year

British Financial Supervision, Financial Conduct Authority (FCA), presented a communication showing the scale of losses of domestic investors for the year 2018. According to data based on almost 7000 reports made in cooperation with Action Fraud, total losses from financial fraud exceeded 197 million pounds.

Almost 30 000 GBP on the investor

Exactly 29 000 pounds is the average loss per person. Such negative data is primarily caused by frauds related to cryptocurrencies, Forex market, shares and bonds based on activities of unauthorized companies, which constituted 85%.

However, there is a clear tendency to move away from telephone contact with potential victims in favor of social media campaigns, mailing mailings as well as websites (often clones, ie sites that impersonate legally operating institutions).

Pay attention to…

The British regulator has created a six-point list, in which it distinguishes symptoms that may indicate attempts of fraud:

1. Unexpected contact - usually telephone contact, but more and more often also mailing, social media news;
2. Time pressure - offers limited in time, tempting bonuses or rebates for investments in a given period of time;
3. Social proof - crafted opinions and solicitation under the pretext of other people's investments;
4. An unrealistic return - ensuring high (unrealistic) rates of return with low or no risk in a short time;
5. False authority - using the image of other people or basing marketing on well-known literature or websites;
6. Flattery - building friendly relationships to increase the confidence of the unconscious victim.

We warn against using the services of unlicensed companies. Before opening an account, always make sure that the broker has the appropriate regulations and permits from the indicated institution supervising the financial market.