Over a fifth of over 55s have been targeted by investment scammers in the past three years, according to research by the Financial Conduct Authority (FCA).
The findings have been released with advice that individuals reject any unsolicited contact on investments, get impartial advice before investing and to check the FCA Register to ensure investment firms or individuals are authorised.
The FCA found 22 per cent of over 55s, with above average incomes, suspect they were targeted by a fraudulent investment scam in the past three years and 32 per cent of those aged 75 and over.
On average, victims of investment fraud lost £32,000 each last year according to the FCA, which is concerned that the recent pension freedoms are making over 55s an increasingly attractive target for fraudsters.
Mark Steward, director of enforcement, FCA, advised that no investment decision should be rushed.
"Be sceptical. Be suspicious," he said.
"Ask questions and get answers you can verify. And remember, if you receive an unsolicited call about an investment opportunity that sounds too good to be true then it probably is. The best thing to do is hang up.”
The research comes as part of FCA’s ScamSmart campaign, fronted by Nick Hewer (Apprentice star and Countdown host), which has found that 14 percent of over 55s spend little or no time researching financial investment products before handing over money.
The most common check carried out before investing in a financial product was to look at a company’s website (41 percent). Far fewer (27 percent) sought professional, impartial advice.
Jason Witcombe, director at Evolve Financial Planning, said the pension rule changes give an excellent opportunity for scammers to play on people's fear and greed.
"It does concern me and its a pretty difficult area to legislate for apart from having more robust criminal punishment for the people involved," he said.
