The Financial Conduct Authority is to look at whether there needs to be any legislative or rule changes to close any loopholes that scammers use to exploit savers.

It is Business Plan for 2017/18, the FCA said it will continue to focus on taking action against firms and individuals who carry out scams. Currently, such action includes civil court action to stop activity and freeze assets, insolvency proceedings and criminal prosecution.

Pensions scams are a major problem facing the industry; the most recent FCA data revealed that 32 per cent of over 75s have been targeted by fraudulent investment scams in the past three years. A further 22 per cent of over 55s with higher incomes have also been targeted. On average, victims of investment fraud lost £32,000 each.

As part of its work, the FCA will look at how innovation of new products and services could benefit vulnerable consumers and increase access to financial services. However, as only a limited number of investment scams fall within the FCA remit, it emphasised the need for prevention through consumer education and awareness.

It will continue its work on the ScamSmart campaign, which aims to help protect consumers from falling victim to investment fraud. The FCA plans to run advertising as part of its next phase in the campaign.

To complement ScamSmart, the FCA said it will look at ways it can work with the government, other regulators and consumer organisations to create effective messages to help consumers understand fraudsters’ techniques.

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