Nearly two in five (39 per cent) investors who have avoided a scam claim that their investigative or research skills are helping them to spot the clues to stop scammers, research from the Financial Conduct Authority (FCA) has revealed.

The research, which surveyed 1,036 UK adults who currently or previously have held investments, and have avoided a suspected scam, as a part of the FCA’s ScamSmart campaign, also found that 32 per cent of those surveyed relied on pure gut instinct to distinguish between genuine investment opportunities and potential scams.

The authority also found that the FCA’s consumer helpline recorded a 193 per cent increase in calls to the FCA in the last five years, as investors detect investment scam warning signs.

So-called “detective” investors cited finding mistakes (34 per cent) and requests for access to their personal details to secure the opportunity (34 per cent) as the most common tell-tale signs of investment scams.

Other warning signs that were found to have made investors suspicious included being contacted out of the blue (33 per cent) and being pressured to invest before an 'offer' ends (26 per cent).

FCA executive director of enforcement and market oversight, Mark Steward, commented: “Scammers are becoming more and more sophisticated, coming up with different tactics, such as impersonation texts or calls, and using the cost-of-living pressure as a way to tempt investors into false opportunities.

“Once money has been lost in this way, it’s difficult to get back, so if something seems too good to be true, it probably is. It’s great to see so many investors being able to spot the signs of a scam, and helping others to do the same. You don’t need to be a Sherlock Holmes to spot scams.”

As part of the ScamSmart campaign, the FCA also launched an augmented reality (AR) experience for investors to use, which includes several AR objects representing the main scam warning signs.

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