Wealth management trade body PIMFA has published a guide to online fraud prevention for member firms as concerns grow about a rising number of internet scams. 

The launch comes as PIMFA joins 16 other organisations, including Which?, City of London Police, The Investment Association and the ABI in calling for legislation to tackle the growing menace of online fraud.

The organisations want the government to include online scams in its proposed Online Safety Bill – which could be announced in next week’s Queen’s Speech.

The guide includes information on the common types of fraud including impersonation fraud, retail bond fraud, social media fraud and cloned websites. 

It also provides examples of real-life situations in which a firm or its clients were the victims of fraud, as well as advice on best practice to help prevent fraudsters from gaining access to clients. A guide for consumers will follow shortly.

Last year, Action Fraud received 356,649 reported cases of fraud with £2.1bn estimated to have been lost to fraudsters.

Investment frauds based on unsuitable or non-existent investment products, pension liberation scams, boiler room scams and Ponzi or Pyramid schemes accounted for less than 10% of all reported crimes but 25% of all financial losses at £501m, PIMFA said.

Action Fraud figures show a dramatic increase in online fraud over the past year perpetrated by organised criminals.

Giulia Lupato, head of regulatory policy and compliance at PIMFA, said: “We hope the fraud prevention guide will help firms to protect themselves and their clients as much as possible from fraudsters, and we would encourage members to continue to keep us informed of any attacks they experience or hear of, so that we can continue to update the guide when necessary.

“At the same time, we continue to believe the Online Safety Bill offers one of the clearest ways to provide a legal framework that offers consumers greater protection from online fraud.”