2021 scam: warning issued as fraudsters cheat wealthy Britons with their pension funds’ | Personal Finances | Finance
More than half of those classified as high net worth individuals (HNWI) admitted to having been duped by a financial scam in recent years.
That figure rises to almost two-thirds of wealthy people with assets over Â£ 2million.
As part of its research into financial scams and fraud in the UK, Saltus Wealth Index interviewed 1,000 people with assets over Â£ 250,000 to determine how they were affected by financial crimes over the course of in recent years.
Around 36% of those with fortunes between Â£ 250,000 and Â£ 1million said they had fallen for financial scams.
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That number rose sharply to 41% for people with assets of around Â£ 500,000 to Â£ 1million.
More than half of people (53%) with assets totaling between Â£ 1-2million have also lost hard-earned money to fraudsters.
In the study, women were slightly more likely than men to say they had been the victims of financial scams.
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Of all age groups, Gen Xers were found to be the most likely to be reported as the target of fraud.
Mike Stimpson, a partner at Saltus, explained how people can protect their pensions and other assets from scammers.
Mr Stimpson said: “We all know that professional advice can help you reach your financial goals, but one of the lesser known – but hugely important – benefits of having a financial advisor is that they can also help you. help protect you from financial crime.
âWe can see that people aged 35 to 44 are the most likely to have reported being scammed.
âAlthough this study focuses on reported crimes, we cannot conclude with certainty that this age group is actively targeted by criminals.
“Logic suggests that those who start thinking about what to do when they can access their pension (at age 55) may be at greater risk as fraudsters see an opportunity to defraud people from their pension fund. retirement.”
The financial expert noted the importance of seeking professional advice before making risky investments or other decisions involving money.
Mr Stimpson added: âAs a general rule, it’s best to ignore – or ideally, report – any unsolicited contact because a true financial advisor wouldn’t cold call about a specific investment opportunity.
âAny unconventional commission arrangement should also raise a red flag.
âHaving a long-term relationship with a financial advisor can give you real peace of mind, not only that they make your money work for you, but also that they support you when it comes to protecting your wealth. .
âFinancial advisers know the markets, they know when something is too good to be true, and they care about your best interests.
“At the end of the day, that means they’re your best line of defense when it comes to financial scams.”
Those who have been affected by any form of financial scams in the UK are encouraged to report their case to Action Fraud, the UK’s official scam watchdog.