Investment Scams Surge: Barclays 2024 Urged Toward Greater Accountability

Investment Scams Surge: Barclays 2024 Urged Toward Greater Accountability

(DailyVantage.com) – Barclays’ 2024 analysis reveals a surge in costly investment scams, sparking calls for increased corporate accountability.

At a Glance

  • Investment scams rose by 29% in 2023, with social media as a key platform.
  • The average claim for men reached over £16,000.
  • Barclays urges improved social media verification for financial ads.
  • Barclays emphasizes cross-industry collaboration to combat scams.

Rise of Investment Scams

Investment scams saw a 29% increase in 2023, with social media being a major platform for these deceptive activities. Reports show that such scams accounted for 33% of all money lost to scammers by Barclays’ current account customers.
A significant concern is that these scams have a steep financial impact, with average claims exceeding £14,000, and even higher for men, surpassing £16,000. This highlights the need for vigilant action by both consumers and corporate entities.

Social media has become a breeding ground for scams, with a substantial portion of young people, particularly those aged 18-34, encountering suspected investment fraud on these platforms. This raises concerns about the role technology companies play in the spread of scam-related content. Barclays calls on social media giants to do more in their verification processes to safeguard users against misleading financial advertisements.

Calls for Corporate Accountability

Barclays emphasizes the need for transparency and accountability among social media firms, advocating for them to act decisively in preventing fraudulent activities. The link between scam proliferation on social media and inadequate ad verification is undeniable, and experts note that tackling scams at their source is crucial. Barclays’ spokesperson, Stephanie Mac Sweeney, stresses the importance of robust action: “It’s worrying to see such a rise in investment scams…social media firms must take responsibility.”

Financial Conduct Authority’s consumer helpline has seen a 193% increase in calls related to investment scams over the past five years. This alarming statistic underscores the escalating scale of the problem, demanding urgent attention from all stakeholders, including governmental bodies and financial institutions, to address these emerging threats effectively.

Need for Public Awareness and Education

Barclays emphasizes the vital role of public awareness in combating scams. Despite increased awareness of traditional scams, newer, sophisticated tactics remain under-recognized by the public. Their guidance includes practicing due diligence by pausing before investing, verifying offer legitimacy, and seeking second opinions. In addition, citizens are encouraged to avoid immediate decisions when faced with investment opportunities advertised online, which often present as too good to be true.

Education is key to empowering consumers against scam attempts. Barclays underscores the importance of community-level vigilance and collaboration across industries to successfully tackle these challenges. As the digital world expands, so do the tactics of scammers; hence the need for a robust, collaborative approach that ensures consumer protection from financial fraud.

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