Social media fraud is increasingly an unfortunate reality of life. According to the National Fraud Intelligence Bureau, UK cybercrime in total cost over £3 billion in the year to March 2022, with more and more incidences of social media fraud.
Efforts are being made to address this worrying statistic. However, our industry regulator the Financial Conduct Authority (FCA), the police and even the UK Government are currently facing challenges convincing social media platforms to take greater responsibility for financial crime prevention. In the meantime, you can take steps personally to raise your awareness and thus protect your assets.
Keeping safe – some general rules
Over the years we have written articles about Keeping your wealth safe from scammers and How to be better protected from financial crime in support of FCA resources such as ScamSmart, which directs to information on common scams and encourages consumers to make use of:
Safety on social media
To protect yourself on social media there is no substitute for a healthy sense of scepticism when dealing with those purporting to be financial services businesses. In addition, we would always recommend:
In particular, the FCA warns about ‘clone firm’ investment scams, where fraudsters set up fake company websites and then try to extract money from investors by posing as legitimate contacts. This is very similar to fraudsters setting up fake social media profiles and claiming to represent legitimate firms. In either case, again, we encourage any would-be investors to check the FCA Warning List and FCA Register to avoid being duped.
Spotting when something isn’t right
Fraudsters act in a variety of ways to try and catch you off guard (as we explain further in our articles above) but it’s worth noting any combination of these behaviours:
How we reassure clients
Given our dedication to security in this environment of prevalent cybercrime, there are certain things we do and most certainly would not do as we deal with clients on a day-to-day basis.
Being highly vigilant on behalf of our clients is what you should expect when dealing with us – a similar attentive approach informs how we invest and how we strive to improve consumer outcomes.
But as we all navigate a fast-changing electronic ecosystem we must be prepared to question more, to be super cautious with the information we share, and which we may unknowingly put into public spaces.
Please get in touch if you have any queries about how our approach could benefit you.
Please note, the value of your investments can go down as well as up.