FCA warns of screen sharing scams
The UK Financial Conduct Authority (FCA) today issued a warning regarding sophisticated scams targeting investors.
New research from the FCA has found that nearly half (47%) of investors would fail to identify a screen sharing scam, as it reveals an increase of 86% in cases in one year, with 2,014 cases and over £25 million in losses.
In one case, a 59-year-old who was persuaded to download remote desktop software to secure an investment, lost over £48,000 while scammers accessed her banking details, her pension, and applied for loans on her behalf.
Using platforms including Teams, TeamViewer and Zoom, screen sharing scams not only involve consumers sharing their financial data – but scammers have also been able to embed themselves in victims’ digital devices to access online banking and investment details.
To understand what might be influencing potential victims, the FCA surveyed 2,000 investors from the ages of 18 to 55+. The results showed that 51% of would-be investors would check if a company appears on the FCA’s Warning List when deciding if an investment opportunity is legitimate. The FCA’s Warning List is a list of firms that are not authorised or registered by the FCA, and are known to be running scams.
However, of the 91% who said they would never share their PIN with a stranger, 85% would not think a request by a website to use or download software as a warning sign that someone was seeking to gain illegal access to personal information on your device.
Likewise, while 88% said they would check if their investments were offered or sold by FCA firms, 10% of these people would still trust their gut instinct with an investment opportunity from someone they did not know without making proper checks, like ensuring the firm or the financial promotion is properly authorised.
With the pandemic increasing use of video conferencing and remote platforms to both work and socialise, scammers are taking advantage of a growing familiarity with requests for screen sharing. Although older respondents admitted needing more help with technology, younger investors are not immune: a quarter (26%) of those aged 18-34 would agree to screensharing their online banking or investment portal with someone they had not met.
The research also revealed other factors which might tempt investors to make a snap decision: 23% said they would be encouraged if the person they were speaking to appeared knowledgeable about investing; 17% said the possibility of securing better returns than elsewhere, and 14% would be encouraged if that person appeared to be successful – with displays of wealth.
The FCA is calling on all investors to be ScamSmart and check the advice on the Scamsmart website, including its Warning List before making any investment decisions. This will help identify any firms that are actively running scams, or flag to investors where additional research is needed.
If you deal with an unauthorised firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.