As people attempt to make money in the cost of living crisis, investment may prove a tempting option. Legitimate investment does put capital at risk, and people could get less back than they originally put in.
However, for those who fall victim to investment scams, the price could be far more to pay.
HSBC shared the story of Melissa*, a customer with the bank for 11 years, who had never tried investing before.
However, Melissa’s interest was piqued by an influencer on social media.
He portrayed himself as a successful businessman with a focus on promoting investments.
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With the influencer contacting her on a regular basis over 13 months with advice, Melissa felt confident.
The man showed her information to indicate her investment growing in value – however, this a common tactic used to build trust.
In total, Melissa made 160 payments which amounted to more than £300,000. She even sold “some of her assets” in order to fund investments.
Melissa explained: “He kept telling me that I would make significant returns on these investments.”
When HSBC became suspicious, the bank made several calls to Melissa to find out what was going on.
However, the influencer had coached Melissa how to respond to the calls so his fraud wouldn’t be spotted.
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It was only when speaking to a family member about her investments that Melissa made a horrifying…