Over 65s most likely to be targeted by share fraudsters, warns FSA

People over 65 are more likely to be targeted by fraudsters and con artists warned the Financial Services Authority (FSA) today, as it unveiled plans to help protect older people from financial scams by working in partnership with Age Concern and Help the Aged, the UK's foremost charity for older people.

The new plans will be revealed at the first FSA consumer focussed financial crime conference, taking place today in London. The conference will bring together representatives from the financial services industry, government and law enforcement agencies, with an interest in protecting consumers from the threat of financial crime. The effect of the current economic climate on financial crime, the increasingly sophisticated techniques used by criminals, and a psychological view on what motivates people to commit fraud will also be covered at the conference.

The project to help protect older people, which is expected to be rolled out by autumn 2009, builds on the efforts Age Concern and Help the Aged is already making to help them manage their money. Concerns about older people being especially vulnerable to share fraudsters and other types of scams were identified in an FSA survey on people's awareness and attitudes to financial crime, published today.

The survey showed that:

• 35% of people targeted by share fraudsters in the last year were over 65;
• 23% of people aged over 65 felt they could become victims of fraud in 2009, yet nearly 49% did not think there was enough information on how to protect themselves from fraud; and
• Worryingly 41% of the people questioned who did not know that fraudsters could use personal details in passports, driving licences and mortgage applications to steal their identity, were aged over 65.

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."

Commenting on the new partnership, Michelle Mitchell, charity director for Age Concern and Help the Aged, said:

"All too often older people are the target of scammers and this is why a strategy designed to protect older people is so important. Through our partnership with the FSA we hope to bring an end to unscrupulous criminals taking vulnerable older people for their entire life savings. Older people have worked a lifetime to save what money they have and to see that money stolen is simply unacceptable."

Other key themes from the survey:

• Nearly a quarter of people in the UK felt they were more likely to fall victim to fraud in 2009;
• About 12 million adult internet users in the UK have been contacted by criminals wanting them to confirm their bank details, take part in a pyramid scheme or a money transfer scam (also called 419 scams)
• Half of the people surveyed did not know that their mortgage application or insurance document held enough information for it to be used to steal their identity;
• Three out of five people targeted by share fraudsters, pyramid scheme operators and 419 scams are men;
• Women were more likely than men to have been billed for products they did not remember buying; and
• Two thirds of those who did not know their passports, driving licences or birth certificate held valuable information that can be used to steal their identities, were women.

Also speaking at the conference, criminology professor Martin Gill will note that:

"These findings suggest that attempts at defrauding people are more commonplace than we think. There is an inevitable tendency for those who deal with fraud as part of their working lives to feel that there is good knowledge out there about how people should protect themselves from fraud. However, the results highlight the need for everyone to be more vigilant so consumers don't lose out. We do not need a recession to tell us we need to act, the evidence is already there."

The FSA is adding a new page on www.moneymadeclear.fsa.gov.uk, its consumer website, to help anyone worried about falling victim to fraud. It will have useful tips and factsheets including a joint leaflet produced with the City of London Police Operation Archway and National Fraud Strategic Authority (NFSA) with answers to questions people frequently ask about financial scams.

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