LOW interest rates on savings are prompting many to look at alternative ways of boosting their cash.

Investments can appear to be a favourable option - and some probably are, provided they are thoroughly researched, or you seek professional financial advice - but it seems there are people out there who, conscious of those with pension pots, are preying on the vulnerable for their own profit.

According to the Financial Conduct Authority (FCA), 22 per cent of over-55s and 32 per cent of over-75s believe they have been targeted by an investment scam in the last three years.

The FCA is urging over-55s to take their time to check that investment ‘opportunities’ are legitimate before they hand over their money.

New research by the FCA reveals that 55 per cent of those who have invested in financial products did so on their own, rather than making the decision with family, and 14 per cent of over-55s spend little or no time researching financial investment products before handing over money, rising to 26 per cent of over-75s.

According to figures from ActionFraud, the UK’s national fraud and cyber crime reporting centre, on average victims of investment fraud lost £32,000 each last year.

Recent pension freedoms and low interest rates offering poor returns on savings are making over-55s an increasingly attractive target for fraudsters.

The new research is part of the FCA’s ScamSmart campaign, helping to protect consumers from investment fraud. The campaign features an interactive tool, the FCA warning list scamsmart.fca.org.uk/warninglist that helps investors find out more about the risks associated with an investment, and check a list of firms the FCA knows are operating without its authorisation.

Maria Dragicevic - a community project officer with the SAFER Project, an award-winning Big Lottery-funded community protection and empowerment programme supporting over-55s in West Yorkshire and delivered by West Yorkshire Trading Standards - helps to run workshops around Bradford and has already had investment fraud incidents brought to her attention.

The anecdotal cases coming through are evident of an increase in people being approached to invest, and the de-regulation of pension funds for the over-55s appears to appeal to the scammers who are preying on those who suddenly have cash to hand.

Mailshots and phone calls are one way of enticing people and, it seems, the most popular investment being promoted at the moment - according to Maria - is art.

She says a couple of cases that have been brought to their attention involve people who have recently sold or bought shares. It isn’t known how the scammers get the information to contact them, but they do and have been trying, and in one case succeeded, to entice them to invest in art which is viewed as giving a higher return.

In one incident the scammers attempted to get the investor to invest around £15,000, his life savings, in art that would be stored in Geneva. Fortunately in that incident frontline professionals were able to intervene and no money was handed over.

However, another investor did hand over large sums of money and did receive three works of art but, according to Maria, they were not worth the amount of money paid which ran into a few thousand pounds.

But Maria says the operators are very ‘elaborate’ and ‘professional’, sending out letterheads and with websites featuring exclusive addresses.

She says quite often they will also ‘piggy back’ on something that is being profiled in the news, such as the wonder material known as graphene.

“They offer investment opportunities in things like that,” says Maria.

Between January 1 and November 30 this year there have been 92 recorded investment scams in West Yorkshire, 21 of which were in Bradford.

Now Maria and her team are keen to raise awareness of ScamSmart to prevent others falling victim. “You can go in and put in what it is you are thinking of investing in and they will tell you if it is regulated or un-regulated,” she explains.

For more information or advice call ActionFraud on 0300 123 2040; visit actionfraud.police.uk or call Citizens Advice on 0345 404 0506.

West Yorkshire Trading Standards SAFER Team offer scams and fraud workshops to community groups for those aged over 55. To find out more, email safer@wyjs.org.uk.