Scammed? Be more like Sherlock Holmes
Have you ever taken inspiration from Sherlock Holmes to avoid being scammed in your investments?
Have you ever taken inspiration from Sherlock Holmes to avoid being scammed in your investments? Well, it turns out a quarter of UK crypto investors have! The Financial Conduct Authority (FCA) recently released a press release highlighting that 25% of investors who avoided a scam were able to do so because they took inspiration from the famous detective.
In 2022, these "armchair detective" investors saved over £2m by reporting suspicious firms or individuals to the FCA before losing money. It's great to see investors taking their financial safety seriously and being proactive in protecting their investments. (source)
The FCA also found that 39% of respondents claimed their investigative or research skills helped them spot potential scams, while 32% relied on their gut instincts to distinguish between genuine investment opportunities and potential scams. This is a good reminder to always do your due diligence when considering investment opportunities, whether it's researching the company, checking regulatory bodies' records, or seeking professional advice.
According to their research, "detective" investors found mistakes (34%) and requests for personal details (34%) as the most common warning signs of investment scams. Additionally, being contacted out of the blue (33%) and pressured to invest quickly (26%) were also flagged as suspicious.
The FCA surveyed 1,036 investors who avoided scams and found that a third (33%) of them were targeted via email, while a quarter (25%) received a personal phone call. When investors realized the investment opportunity was a fraud, 42% warned their family and friends, and 27% posted on social media to warn others.
It's important to be ScamSmart and always check the FCA's Warning List before making any investment decisions. This can help identify potential scams or unauthorized operators or highlight areas where additional research may be necessary.
It's important to remember that if you deal with an unauthorized firm, you won't be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if anything goes wrong. This is why it's essential to do your research and ensure you're dealing with a legitimate and authorized firm. (read more: https://coinpass.com/en/blog/markets/how-to-avoid-being-scammed-be-more-like-sherlock-holmes)…
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