Money transfer or '419' scams, pyramid schemes, and illegal requests for bank details are all being used on retirees according to the FSA and charities.
Britain's retirees are particularly vulnerable to investment fraud, the Financial Services Authority (FSA) suggested today. The regulator highlighted the problem as its hosts a special "financial crime conference" in London.
Attended by many representatives from banks and others in the financial services industry, the discussion will centre on the way in which fraud has been affected by the financial crisis and general downturn in the economy.
In addition, an FSA project aimed to protect older people from sophisticated share fraud and other scams, in conjunction with Age Concern and Help the Aged, is scheduled for roll-out this autumn.
FSA figures suggest that over a third (35 percent) of people targeted by this kind of fraud over the past year were aged over 65. Moreover, half (49 percent) of retirees said that they felt there was not enough information available on how to protect themselves from the crime, which commonly involves criminals cold-calling retirees and asking them to confirm bank details, "419" money transfer scams and worthless "pyramid" share schemes.
Speaking at the conference today, Chris Pond, FSA director of financial capability, will say: "Fraudsters, like all criminals, tend to prey on the most vulnerable people and our research shows this is definitely the case with criminals who commit financial crimes. This is a clarion call to everyone that we cannot sit back and let honest people lose their hard earned money to unscrupulous individuals.
"We are delighted that Age Concern and Help the Aged have agreed to work with us on tackling this problem. Our partnership will help ensure older people are better equipped with the tools they need to protect themselves from fraud and other financial scams so the fruits of their life's labours do not fall into the wrong hands."
CIFAs, the UK's fraud service, found that overall fraud levels went up by 16 percent in 2008. Over the year, the UK's economy officially entered recession, with output contracting by 1.6 percent over October to December.
