News
New figures reveal that men aged 65 are the most likely victims of investment fraud
Posted 10/10/16
Figures released today by Action Fraud and the City of London Police show that over 77 per cent of all victims reporting investment fraud are men with the average age of 65. Their average loss is over 拢32,000, with most victims living in metropolitan areas.
In 2014 the City of London Police, City of London Corporation Trading Standards, Metropolitan Police, National Trading Standards 鈥楽cambusters鈥� Team, HMRC and the FCA, launched Operation Broadway, a London-wide intelligence-led drive to uncover and disrupt suspected 鈥榖oiler room鈥� investment frauds operating out of some of the capital鈥檚 most iconic buildings in the heart of the UK's main financial districts.
Operation Broadway teams have conducted inspections and disruption raids at over 100 offices in the City and Canary Wharf since its launch. Police and trading standards chiefs believe this has created a hostile environment for fraudsters.
Just last Thursday (6 October) the Money Laundering Investigation Unit disrupted a suspected boiler room in the City of London, selling fake bonds. Two search warrants were executed: One in Fleet, Hampshire, and other in Lothbury, City of London. Two cheques, totalling 拢130,000 were seized , together with other documentary items, as part of the operation.
But despite this type of work, UK-wide investment fraud reports to Action Fraud increased by 9.5 percent last year - from 2,910 in the financial year 2014/15 to 3,186 in 2015/16 - indicating criminals are operating boiler rooms in new locations in the UK.
Over the next week [10-16 October] the City of London Police, City of London Trading Standards and their Operation Broadway partners will be raising awareness of investment fraud and providing advice to help people protect themselves and their family. To do this we will be sharing a number of victim testimonies on our social media channels. View victim video here. The videos, which will be released throughout the week, show the impact that this type of fraud has on victims. There has historically been examples of victims committing suicide after this type of fraud has been committed against them, which makes it clear that there is far more than just a financial impact.
The City of London Corporation is creating a specialist trading standards officer post under the Operation Broadway remit which will focus on rolling the City鈥檚 model out across Greater London. The specialist officer will work with trading standards teams across London鈥檚 local authorities to ensure mail forwarding companies and serviced office providers are not allowing boiler rooms to operate on their patch. It is also hoped that this work will produce useful intelligence that will make it even harder for investment fraudsters to operate.
The City of London Corporation鈥檚 Trading Standards, with help from the City of London Police last year prosecuted Servcorp UK Limited and Regus Management UK Ltd, two serviced office providers, which were allowing suspected boiler room fraud to operate on their watch, under the London Local Authorities Act.
Over the rest of 2016/17, officers from the City of London Police and City of London Corporation Trading Standards will also be reaching-out to community groups, offering training to help senior citizens avoid becoming victims of investment fraud. They will also be offering aide-memoirs so potential victims are reminded what they need to do if they receive a cold call.
Detective Chief Inspector Dave Manley Head of the City of London Police鈥檚 Fraud Squad and Operation Broadway lead said:
鈥淚nvestment fraud continues to be a major threat to individuals in this country and statistics show that those who are over 60 are particularly vulnerable to this type of crime.
鈥淔raudsters will do everything they can to manipulate potential victims and convince them that they are making genuine investments.
鈥淯nfortunately once a victim is sucked-in by a fraudster they often end-up parting with a significant amount of money and this can have devastating effects on both the individual and their families.
鈥淭he City of London Police is the national policing lead for fraud and it is our job to work with police forces across the country as well as with our partners to ensure that criminals such as investment fraudsters are disrupted and ultimately prevented from committing crime.
鈥淏y raising awareness of investment fraud we hope to enable people to recognise when they are being targeted by the criminals and to stop them before it is too late鈥�.
Jon Averns, City of London Corporation鈥檚 Head of Trading Standards said:
鈥淲orking with our partners across London, we are creating a hostile environment for fraudsters who are duping people with the promise of high returns on false investments.
鈥淲e are identifying fraudulent traders as early as possible in order to prevent consumers from across the UK being ripped off.
鈥淥ur message is simple: don鈥檛 send your money to someone you don鈥檛 know, for a product you haven鈥檛 seen.鈥�
Jennie Granger, HMRC鈥檚 Director General, Customer Compliance Group said:
鈥淚n 2014/15 HMRC prevented the loss of 拢1.3 billion in the most serious cases relating to organised crime.
鈥淥ur work with the City of London Police and partners helps HMRC in its role as an Anti-Money Laundering supervisor to prevent fraudulent activity, protect the public, and bring criminals to justice.鈥�
Case study available for interview:
Nelzine, a retired woman from Colchester was a victim of investment fraud in 2009 when she was cold-called by a supposed investment broker who offered her the opportunity to buy shares in a company. She received share certificates and believed the investment to be genuine, she was then continually called by the company who asked her to invest more money.
She invested 拢62,000, but then became suspicious and reported the company to the police. An investigation by the City of London Police found that Nelzine鈥檚 suspicions were correct and company were offering investment opportunities which did not exist. In 2013, two men were sentenced to a total of 12 and half years in prison as a result.
In 2014 the City of London Police, City of London Corporation Trading Standards, Metropolitan Police, National Trading Standards 鈥楽cambusters鈥� Team, HMRC and the FCA, launched Operation Broadway, a London-wide intelligence-led drive to uncover and disrupt suspected 鈥榖oiler room鈥� investment frauds operating out of some of the capital鈥檚 most iconic buildings in the heart of the UK's main financial districts.
Operation Broadway teams have conducted inspections and disruption raids at over 100 offices in the City and Canary Wharf since its launch. Police and trading standards chiefs believe this has created a hostile environment for fraudsters.
Just last Thursday (6 October) the Money Laundering Investigation Unit disrupted a suspected boiler room in the City of London, selling fake bonds. Two search warrants were executed: One in Fleet, Hampshire, and other in Lothbury, City of London. Two cheques, totalling 拢130,000 were seized , together with other documentary items, as part of the operation.
But despite this type of work, UK-wide investment fraud reports to Action Fraud increased by 9.5 percent last year - from 2,910 in the financial year 2014/15 to 3,186 in 2015/16 - indicating criminals are operating boiler rooms in new locations in the UK.
Over the next week [10-16 October] the City of London Police, City of London Trading Standards and their Operation Broadway partners will be raising awareness of investment fraud and providing advice to help people protect themselves and their family. To do this we will be sharing a number of victim testimonies on our social media channels. View victim video here. The videos, which will be released throughout the week, show the impact that this type of fraud has on victims. There has historically been examples of victims committing suicide after this type of fraud has been committed against them, which makes it clear that there is far more than just a financial impact.
The City of London Corporation is creating a specialist trading standards officer post under the Operation Broadway remit which will focus on rolling the City鈥檚 model out across Greater London. The specialist officer will work with trading standards teams across London鈥檚 local authorities to ensure mail forwarding companies and serviced office providers are not allowing boiler rooms to operate on their patch. It is also hoped that this work will produce useful intelligence that will make it even harder for investment fraudsters to operate.
The City of London Corporation鈥檚 Trading Standards, with help from the City of London Police last year prosecuted Servcorp UK Limited and Regus Management UK Ltd, two serviced office providers, which were allowing suspected boiler room fraud to operate on their watch, under the London Local Authorities Act.
Over the rest of 2016/17, officers from the City of London Police and City of London Corporation Trading Standards will also be reaching-out to community groups, offering training to help senior citizens avoid becoming victims of investment fraud. They will also be offering aide-memoirs so potential victims are reminded what they need to do if they receive a cold call.
Detective Chief Inspector Dave Manley Head of the City of London Police鈥檚 Fraud Squad and Operation Broadway lead said:
鈥淚nvestment fraud continues to be a major threat to individuals in this country and statistics show that those who are over 60 are particularly vulnerable to this type of crime.
鈥淔raudsters will do everything they can to manipulate potential victims and convince them that they are making genuine investments.
鈥淯nfortunately once a victim is sucked-in by a fraudster they often end-up parting with a significant amount of money and this can have devastating effects on both the individual and their families.
鈥淭he City of London Police is the national policing lead for fraud and it is our job to work with police forces across the country as well as with our partners to ensure that criminals such as investment fraudsters are disrupted and ultimately prevented from committing crime.
鈥淏y raising awareness of investment fraud we hope to enable people to recognise when they are being targeted by the criminals and to stop them before it is too late鈥�.
Jon Averns, City of London Corporation鈥檚 Head of Trading Standards said:
鈥淲orking with our partners across London, we are creating a hostile environment for fraudsters who are duping people with the promise of high returns on false investments.
鈥淲e are identifying fraudulent traders as early as possible in order to prevent consumers from across the UK being ripped off.
鈥淥ur message is simple: don鈥檛 send your money to someone you don鈥檛 know, for a product you haven鈥檛 seen.鈥�
Jennie Granger, HMRC鈥檚 Director General, Customer Compliance Group said:
鈥淚n 2014/15 HMRC prevented the loss of 拢1.3 billion in the most serious cases relating to organised crime.
鈥淥ur work with the City of London Police and partners helps HMRC in its role as an Anti-Money Laundering supervisor to prevent fraudulent activity, protect the public, and bring criminals to justice.鈥�
Case study available for interview:
Nelzine, a retired woman from Colchester was a victim of investment fraud in 2009 when she was cold-called by a supposed investment broker who offered her the opportunity to buy shares in a company. She received share certificates and believed the investment to be genuine, she was then continually called by the company who asked her to invest more money.
She invested 拢62,000, but then became suspicious and reported the company to the police. An investigation by the City of London Police found that Nelzine鈥檚 suspicions were correct and company were offering investment opportunities which did not exist. In 2013, two men were sentenced to a total of 12 and half years in prison as a result.
Find more victim testimonies听
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Notes to Editors:听听
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What is a boiler room?听
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A boiler room is an office from which investment fraudsters operate. Fraudsters will often rent small offices in prestigious financial districts to give them an air of legitimacy. It was traditionally said that these fraudsters would rent an office鈥檚 boiler room for a low rental value and this name is now widely used to describe any office which fraudsters use as a base from which to commit criminal activity.听
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What should consumers do to avoid investment fraud?
- Reject unsolicited investment offers
- Check the Financial Conduct Authority鈥檚听听of firms to avoid before investing
- Get impartial advice before investing听
What do victims typically invest in when they are subject to an investment fraud?听
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Where do victims typically reside?
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The map below shows where investment fraud victims reported from in 2014-16.听
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