Nowadays, many people try to invest in, for instance, stocks, bonds, funds, and real estate to make profits with it. It is therefore no surprise that these people want to be certain that their investment will be profitable and therefore pay an investment adviser regarding the issue. What happens, however, when purported investment advisers take advantage of you without your knowledge?
The Financial Conduct Authority (FCA) announced that scammers are offering help to people by setting up new schemes via online platforms. In other words, victims download an application where fake investment advisers can remotely control their computers and thus have access to their private bank accounts. They argue that they need access to set up the investment scheme and to be able to monitor it. These incidents have increased from 367 to 683 within a time span of 6 months in 2021. The ScamSmart campaign by FCA, whose purpose is to increase awareness of investment scammers, found out that a total of over £25 million was stolen from January 2021 to March 2022.
But why do so many would-be investors trust unknown companies? According to the study, 47% do not think that a request to monitor their software is an indication of a scam or potential danger. In addition to that, 23% stated that they would feel more confident if the person they were speaking with seemed knowledgeable about investing. Another 17% said that they would share their screen if they felt they would get better returns with this investment platform than elsewhere. And lastly, 14% highlighted that they would trust the company if the person they were speaking with appeared wealthy or successful.
But what can investors do in order to prevent a scam from happening to them? First, consumers should never share their screen/PIN with a stranger, and second, they should check ScamSmart’s warning list for suspicious scammers.
You can never prevent a scam from happening, and anyone can become a victim. However, there are certain measures that can and should be taken in order to prevent it. The first and most important aspect is to not give permission for screen-sharing. Investment advice can be given in person, by telephone, or by email, but giving access to private bank details is a very big risk.
References:
BBC News. (2022, May 5). Screen-sharing scams on the rise, watchdog warns. https://www.bbc.com/news/technology-61323399
Sutherland, E. (2022, May 6). Screen sharing scams are on the rise, warns FCA- Publications – Eversheds Sutherland. Eversheds Sutherland. https://www.eversheds-sutherland.com/global/en/what/articles/index.page?ArticleID=en/Financial-services-and-dispute-investigation/Screen_sharing_scams_are_on_the_rise_warns_FCA