Around one in 12 (8%) people would be willing to immediately agree to an investment “opportunity” if it promised to double their money in a year, a survey indicates.
The Censuswide research was commissioned by Nationwide Building Society, which is warning people not to be reeled in by scammers promising returns that are too good to be true.
The average loss to an investment scam is just under £5,000, according to Nationwide’s data.
Overall, just over six in 10 (61%) people said they would agree to an investment promising to double their money in a year, with some of this group saying they would carry out research online or wait for paperwork to arrive before making the investment.
The lure of big returns can be very tempting, but if people aren’t careful, they can lose life-changing amounts to an investment scam— Jim Winters, Nationwide Building Society
Criminals can produce brochures or websites which may appear very professional and they can also clone the websites of legitimate firms to give the impression of being from a trusted brand.
Nationwide is urging any members who are concerned or doubtful about an investment opportunity to use its scam checker service, which is available in branch or by calling a freephone number (0800 030 4057).
If a Nationwide member uses this service and the payment goes ahead and the member is subsequently scammed, unless Nationwide told the member not to proceed, they will be fully reimbursed.
Just under a quarter (24%) of the 3,000 people surveyed said they would be willing to take more risks to make money.
According to Nationwide’s internal data, in 2022, investment scams accounted for 36% of all scam cases, with an average claim of £4,919.
People aged 65-plus accounted for a quarter (25%) of the total number of investment scams reported in 2022, although this was down from 35% in 2021, the society said.
Reports of investment scams among 25 to 34-year-olds accounted for 16% of investment scam cases reported to Nationwide in 2022, rising from 12% in 2021.
Kent, London and Essex were among the areas where people reporting scams to Nationwide were particularly likely to live, according to the society’s data.
Due to the longer-term nature of investing, it can be weeks and sometimes months or even years before people realise they have fallen victim to a scam, with criminals commonly paying false dividends to make their victims believe their investment is growing, Nationwide said.
Jim Winters, director of economic crime at Nationwide Building Society, said: “The lure of big returns can be very tempting, but if people aren’t careful, they can lose life-changing amounts to an investment scam.
If it looks too good to be true, it probably is— Jim Winters, Nationwide Building Society
“At a time when many are experiencing financial pressures, we are seeing an increase in these types of crime – both in terms of volume and the amount lost.
“These types of scams can often be quite sophisticated, as the fraudsters may have created websites and paperwork to help convince people the investment is genuine.
“To make their investment stand out, the returns are often higher than on real investments, so if it looks too good to be true, it probably is.
“This is why we are urging members who might have the merest hint of reservations about the validity of an investment opportunity to get in touch with us on our dedicated scam checker service.”
