"Armchair detective investors" successfully identify potential financial threats, FCA states.
The number of scam reports grew by 193% during the last five years.
Being the
legendary detective Sherlock Holmes, who solved the most complex mysteries of
London's streets, was undoubtedly the dream of many British kids, who are now
active individual investors. A recent survey by the Financial Conduct Authority
(FCA) shows that one in four consumers who have avoided investment fraud in
recent years did not give up on their childhood dreams and drew inspiration from
the Holmes character to spot and report scammers.
Sherlock Holmes-Like
Investors Spots Investment Crime
According
to FCA's statement published on Tuesday, the data gathered from the regulator's
helpline showed a 193% increase in scam reporting calls in the last five years, as retail
investors are getting better at identifying and detecting potential investment
scam red flags. Due to their commitment and timely notification, over Β£2
million of possible losses were foiled.
The newest
research shows that 39% of respondents rely on their Sherlock Holmes-like
investigative or research skills to identify clues. In comparison, 32% trust
their intuition to differentiate between legitimate investment opportunities
and potential scams.
These
'detective' investors identified mistakes (34%) and requests for
personal information (34%) as the most common red flags for investment scams,
along with unsolicited contact (33%) and high-pressure sales tactics (26%).
"Scammers
are becoming more and more sophisticated, coming up with different tactics,
such as impersonation texts or calls, and using the cost of living pressure as
a way to tempt investors into false opportunities. Once money has been lost in
this way, it's difficult to get back, so if something seems too good to be
true, it probably is. It's great to see so many investors being able to spot
the signs of a scam, and helping others to do the same," Mark Steward, the
Executive Director of Enforcement and Market Oversight at the FCA, commented.
"You
don't need to be a Sherlock Holmes to spot scams," Steward added.
Of the
1,036 investors surveyed by the FCA who avoided scams, 33% received the offer
via email and 25% through a personal phone call. Once they realized the offer
was a scam, 42% warned their family and friends, while 27% shared their
experience on social media to alert others.
In April, the FCA unveiled a new three-year strategy to enhance outcomes for markets and retail
investors. The strategy centers on three main objectives: mitigating and
averting severe harm, establishing and assessing benchmarks, and encouraging
competition and favorable transformation within the industry.
Watch the recent FMLS22 panel titled: "Regulation Roundup: Everything You Need to Know for 2023."
FCA Fights Scammers
and Rogue Financial Ads
In the age
of the Internet and social media ubiquity, the FCA's role is no longer limited
to blocking the services of rogue investment market actors but also to identifying
advertisements of their fraudulent offerings.
In
February, the regulator announced that it had rejected 8,582 financial
promotions in 2022, leading to the complete removal or alteration of their
messages. It is a considerable jump of 1,400% compared to the 573 promotions
rebuffed in 2021. At the same time, the FCA issued 1,800 warnings against
scammers to protect British and foreign consumers.
The growing
number of notifications requires the regulator to commit more resources. As a
result, the FCA hired an additional 1,000 officers in 2022 to better protect
consumers and respond more quickly to their calls.
A separate
report by the Cypriot regulator CySEC noted that finfluencers, or financial
influencers, are becoming a growing problem amid the popularity of social media
in investing. They are becoming an authority for many individual traders. According
to a January CySEC survey, more than 30% of retail investors base their decisions
on the opinions of finfluencers.
Being the
legendary detective Sherlock Holmes, who solved the most complex mysteries of
London's streets, was undoubtedly the dream of many British kids, who are now
active individual investors. A recent survey by the Financial Conduct Authority
(FCA) shows that one in four consumers who have avoided investment fraud in
recent years did not give up on their childhood dreams and drew inspiration from
the Holmes character to spot and report scammers.
Sherlock Holmes-Like
Investors Spots Investment Crime
According
to FCA's statement published on Tuesday, the data gathered from the regulator's
helpline showed a 193% increase in scam reporting calls in the last five years, as retail
investors are getting better at identifying and detecting potential investment
scam red flags. Due to their commitment and timely notification, over Β£2
million of possible losses were foiled.
The newest
research shows that 39% of respondents rely on their Sherlock Holmes-like
investigative or research skills to identify clues. In comparison, 32% trust
their intuition to differentiate between legitimate investment opportunities
and potential scams.
These
'detective' investors identified mistakes (34%) and requests for
personal information (34%) as the most common red flags for investment scams,
along with unsolicited contact (33%) and high-pressure sales tactics (26%).
"Scammers
are becoming more and more sophisticated, coming up with different tactics,
such as impersonation texts or calls, and using the cost of living pressure as
a way to tempt investors into false opportunities. Once money has been lost in
this way, it's difficult to get back, so if something seems too good to be
true, it probably is. It's great to see so many investors being able to spot
the signs of a scam, and helping others to do the same," Mark Steward, the
Executive Director of Enforcement and Market Oversight at the FCA, commented.
"You
don't need to be a Sherlock Holmes to spot scams," Steward added.
Of the
1,036 investors surveyed by the FCA who avoided scams, 33% received the offer
via email and 25% through a personal phone call. Once they realized the offer
was a scam, 42% warned their family and friends, while 27% shared their
experience on social media to alert others.
In April, the FCA unveiled a new three-year strategy to enhance outcomes for markets and retail
investors. The strategy centers on three main objectives: mitigating and
averting severe harm, establishing and assessing benchmarks, and encouraging
competition and favorable transformation within the industry.
Watch the recent FMLS22 panel titled: "Regulation Roundup: Everything You Need to Know for 2023."
FCA Fights Scammers
and Rogue Financial Ads
In the age
of the Internet and social media ubiquity, the FCA's role is no longer limited
to blocking the services of rogue investment market actors but also to identifying
advertisements of their fraudulent offerings.
In
February, the regulator announced that it had rejected 8,582 financial
promotions in 2022, leading to the complete removal or alteration of their
messages. It is a considerable jump of 1,400% compared to the 573 promotions
rebuffed in 2021. At the same time, the FCA issued 1,800 warnings against
scammers to protect British and foreign consumers.
The growing
number of notifications requires the regulator to commit more resources. As a
result, the FCA hired an additional 1,000 officers in 2022 to better protect
consumers and respond more quickly to their calls.
A separate
report by the Cypriot regulator CySEC noted that finfluencers, or financial
influencers, are becoming a growing problem amid the popularity of social media
in investing. They are becoming an authority for many individual traders. According
to a January CySEC survey, more than 30% of retail investors base their decisions
on the opinions of finfluencers.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Interactive Brokers Extends US Treasury Bond Trading Time to 22 Hours
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
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π Facebook: https://www.facebook.com/FinanceMagnatesEvents
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βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
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βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaβs premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaβs premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
π£ Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
π LinkedIn: https://www.linkedin.com/company/financemagnates/
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Don't miss out on our latest videos, interviews, and event coverage.
π Subscribe to our YouTube channel for more!π
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
π£ Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
π LinkedIn: https://www.linkedin.com/company/financemagnates/
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π Subscribe to our YouTube channel for more!π
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
π£ Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage.
π Subscribe to our YouTube channel for more!π
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
π£ Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
π LinkedIn: https://www.linkedin.com/company/financemagnates/
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