Why Investment Scams Cost Older Britons the Most

Younger adults actually report investment scams more often. But when someone over 55 gets caught out, the damage is on a completely different level. We're not talking about a few hundred quid lost to a dodgy crypto ad on Instagram. We're talking about pension pots, property equity and decades of careful saving, sometimes wiped out in a single transfer.

UK Finance figures for 2025 put investment fraud losses at £221.5 million, which is a 40% jump on the year before. Over 34,000 reports were filed, and average losses came in above £25,000. That average hides a lot, though. The 35 to 44 age group gets targeted the most, but people aged 55 to 64 lose the most money when they do get hit. The FCA's ScamSmart research puts their average loss at roughly £32,000.

So what's actually behind these bigger losses for older victims, and why should somewhere like Devon be especially worried? Let's get into the numbers and the things that could stop them climbing even higher.

Why the Sums Are Bigger After 55

It comes down to access to money. Since April 2015, pension freedoms have let people dip into their defined contribution pots from age 55. Before that, most people couldn't just pull out their pension savings in one go. Now they can, and scammers are well aware of it.

A pension pot built up over 30 or 40 years can easily hit six figures. Throw in ISA savings, property equity and inheritance money, and you've got a generation sitting on more accessible wealth than any before it.

The FCA has also pointed out that older victims are less likely to report what's happened. Some are embarrassed, others don't even realise they've been scammed until months down the line. So the real losses are almost certainly worse than the official numbers show.

How These Scams Take Shape

• Cloned firms are one of the most common tricks going. Fraudsters will copy the name, address and FCA reference number of a real authorised business, then build a convincing website with email addresses that look almost identical to the genuine ones.
• Unsolicited contact is another dead giveaway. Since January 2019, cold calling about pensions has been illegal in the UK. So any unsolicited call, text or email about your pension is already breaking the law, and that alone should tell you everything you need to know.
• Pressure to move fast is textbook stuff. They'll tell you the opportunity is time-limited or that returns are only available if you transfer within days. No legitimate investment works like that.
• Specific-sounding returns are meant to make you drop your guard. A promise of "8.2% annually, guaranteed" sounds like someone's done their homework, but they haven't. Guaranteed high single-digit returns on low-risk products just don't exist right now.

How to Verify a Firm Before You Commit

The FCA Register lists every firm authorised to provide financial services in the UK, and you can search by name or reference number at fca.org.uk/register. The FCA Warning List matters just as much, because it names firms and individuals that the regulator has already flagged.

James Warwick, founder of Trading Brokers, a review and comparison site for FCA-regulated financial services platforms, tells us “FCA regulation should be the absolute first thing anyone checks about a financial platform. An unregulated firm isn't one to take a chance on, no matter what it's offering or how slick the pitch sounds.”

Warwick also points out that too many people skip this step because a website looks professional or because they've come across positive-seeming reviews. In the age of AI, a polished front end means nothing if there's no proper authorisation behind it.

Why Devon Faces a Higher Risk

Devon's average age is at around 44, compared to England's median of just over 40. Devon County Council's Joint Strategic Needs Assessment confirms that the share of residents aged 65 and over is well above the national picture, with large cohorts in the 70 to 79 age bands.

Coastal towns popular with retirees tend to concentrate exactly the kind of accessible wealth that scammers go after, and rural isolation can make things worse when people have limited access to in-person financial advice.

Report It, Even if It Feels Too Late

If you've been targeted or you've already transferred money, get in touch with your bank straight away. They may be able to freeze the receiving account. You should also report it to Report Fraud and to the FCA directly.

Losing a pension pot that took a whole working lifetime to build hits far harder than just the bank balance. In a county like Devon, where a bigger chunk of the population is approaching or already in retirement, those stakes go up even more. But the checks you can do are simple: verify the firm, ignore unsolicited contact, never let anyone rush you into a decision because they say time is running out, and always trust your gut if something doesn't add up.