Nearly 1 in 5 retirees (17.5%) have been the victim of a financial scam, according to new research from the Financial Services Compensation Scheme (FSCS). 

The study also found that 63% of retirees yet to be hit by a financial scam fear becoming a victim.

Common reasons for retirees to be duped included the website or online advert looking legitimate (28%), high returns on offer (19%) and the telephone caller sounding trustworthy (18%). 

The research was conducted among 2,000 retirees aged between 55 and 75. 

The majority (63%) of those who have so far avoided being a victim of a financial scam says they have an “ongoing concern” about becoming a victim. 

More than three-quarters (76%) said this was due to reading about scams in the media, while almost a quarter (24%) said someone they knew had fallen victim to a scam. 

Of the respondents not concerned about becoming a scam victim, 57% were men compared to 49% of women.  

The FCA issued 1,204 scam warnings in 2020, double the number of 2019.

Even the FSCS has been targeted by scammers. The FSCS says its is alerted “several times a week” on average to instances of scams which impersonate the FSCS or falsely claim FSCS protection for investments. It says it acts on these where it can. 

Caroline Rainbird, FSCS's CEO, said: "Scams are becoming more commonplace, better coordinated and harder to spot. We are helping to tackle scams where we can, for example by monitoring and reporting scams to the financial regulator, the FCA, but given the scale of the issue, consumers need to act as the first line of defence. 

“By remaining vigilant and asking themselves, is the provider genuine, and is the person they’re speaking to who they say they are, consumers will be able to better protect themselves from this growing threat.” 

More information about how to avoid scams and fraudsters can be found on FSCS’s website, and consumers can check their money is protected using FSCS’s checker tools.

Research was conducted online by OnePoll on behalf of the FSCS in February. OnePoll polled 2,000 retirees aged 55-75.

• Research for Hargreaves Lansdown has found that one in four people aged 55 and over would be convinced by a criminal claiming to offer guaranteed returns of 10%.