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Beware surge in get-rich-quick scams, warns ombudsman 

Cash-strapped savers are urged to steer clear of ‘get-rich-quick’ schemes amid a surge in ‘devastating’ investment scams.

The Financial Ombudsman is sounding the alarm on fraudsters who use high-pressure tactics such as cold-calling victims and conning them out of thousands by promising big returns for their cash.

Complaints about investment scams are now outpacing every other type of fraud its investigators deal with.

Scam threat: The Ombudsman is warning over fraudsters who use high-pressure tactics such as cold-calling victims and conning them out of thousands by promising big returns

Investment scammers typically hunt for victims online, with some posing as well-known financial firms by using the same branding and logos on their websites.

And around half of cases the Financial Ombudsman Service (FOS) receives involve cryptocurrency.

Some fraudsters will push for an immediate investment over a phone call, while others will give their victims more time in order to appear legitimate.

And with six in ten cases upheld in the customer’s favour, many banks are failing to reimburse victims when they should.

More than £171 million was lost to investment scams last year, up by 57 per cent on the £109 million recorded in 2020, according to banking trade body UK Finance. 

With household budgets set to be squeezed further by rising inflation and rocketing energy bills, experts fear many more could become victims.

Pat Hurley, lead ombudsman, says: ‘During the cost-of-living…

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