The number of reported financial investment-related fraud cases grew by 74% in 2018, driven by complaints about unregulated "shadow savings market" and cryptocurrency investments, revealing "cracks in the structure" of the UK's regulatory regime, according to law firm Pinsent Masons.
Research from the firm shows that the number of such cases grew to 6,890 to 31 December 2018, up from 3,950 in previous year, with retail investors plagued by the sale of unregulated products and other fraudulent activity. Of the 6,890 cases last year, the most commonly reported were related to share and bond sales, which grew more than fourfold to 860, while the number of pyramid or Ponzi schemes reported grew from 50 in 2017 to 380 in the following year. The research shows that fraudsters are "taking advantage of investors' need for income", amid historically low interests, leaving ...
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