The number of potential unauthorised activity reported to the Financial Conduct Authority last year was 8,507, it has said.

As a result the FCA has published 147 warnings about unauthorised firms targeting UK consumers and appointed investigators in 23 cases. It has also launched the FCA ScamSmart campaign to raise awareness of potential scammers.

Research of 2,301 UK residents over 55 by the FCA found that over 55s are receiving a higher volume of unsolicited calls from unauthorised investment firms, with those being contacted by firms they had not heard of reporting a 40 per cent increase in unsolicited contact.

Three in ten (32 per cent) retirees reported being contacted by a firm offering investments in the last 12 months with nearly 4 in 10 (37 per cent) being contacted as many as three times.

Unsolicited contact including cold calls, post and emails are the most common techniques used by investment scammers and 47 per cent of those who have experienced investment fraud made their investment following unsolicited contact.

The FCA has found the current low interest rate environment is one of the key reasons over 55s are considering investing in a wider range of unfamiliar types of investment products. Research revealed 4 in 10 (41 per cent) have moved money out of savings into investments as the sustained period of low interest rates has seen over 55s adopting riskier investment behaviour in a bid to get a better rate of return.

Of those questioned, 26 per cent chose to invest in unregulated investment products and 23 per cent say they are considering investing in unfamiliar types of investments in the future. Over a quarter (27 per cent) of those who have fallen victim to investment fraud did so having bought an unregulated product through an unauthorised firm.

Previous FCA research found that those over 65 with savings in excess of £10,000 were three and a half times more likely to fall victim to investment fraud, compared with the wider population. Those living in London, the Home Counties and the South East are most at risk.

When questioned, a fifth (22 per cent) of retirees holding unregulated products revealed they have invested more money into unregulated products over the last year than ever before, with 3 per cent investing as often as once a month. Those considering investing in unregulated products in the next 12 months indicated that they would invest an average of over £4,000, with land, wine and art as popular investment choices.

In addition, 13 per cent of those questioned were unaware that unregulated products bought through an unauthorised firm offered no protection from the Financial Ombudsman Service or Financial Services Compensation Scheme, if things go wrong. Despite the risks, 48 per cent of those investing in unregulated products through unauthorised firms do so without getting professional advice or checking publicly available investor information, such as the FCA’s warning list.

FCA director of enforcement Mark Steward encouraged people to do checks before investing money on the FCA ScamSmart website, the FCA warning list and FCA register.

“You don’t need to be gullible to lose money to a scam or fraud. Fraudsters target financially sophisticated people too, who often don’t like to ask what might sound like silly or basic questions,” he explained.

Furthermore, analysis by Xafinity has found signs that potential scam activity in 11 per cent of pension transfer requests. The analysis comes from Xafinity’s pension scam identification unit, which helps trustees identify potential pension scams connected with member transfers.

The service shows that cold calling is increasingly common and that many scammers are enticing members by offering “free pension reviews” and “free advice”. Xafinity’s head of pension scam identification Jackie Warwick said scammers are becoming “much more sophisticated”.

“The issue is exacerbated by unregulated ‘third party introducers’, many of whom offer ‘free pension reviews’ and who find clients for regulated financial advisers,” she added.

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