Lucrative returns, a downplaying of the risks, flattery, only available to you, keep it a secret, people are clamouring, time-limited offer - these are the things that the UK's Financial Conduct Authority expects over-55s to hear about during fraudulent promotional telephone calls.

The regulator has published some new research on the subject that reveals that only two in five (42%) of the 1,000 over-55s in its recent survey think that they know how to spot a fraudulent investment opportunity. As all fraud experts know, people in this age group are a favourite target for fraudsters because they are often rich and senile.

Last year, victims of investment fraud lost on average £32,000 (source: Action Fraud, October 2016) as fraudsters employed increasingly advanced psychological tactics to persuade them to invest. One of the most common methods is to pressurise potential investors to make a quick decision on a time-limited investment offer. More than half (53%) of the over-55s in the survey believed that they were most likely to obtain a good deal if they acted quickly - proof of how many are vulnerable to this tactic.

A third (34%) said that it was best for them not to discuss investment decisions with others and fewer than half (48%) said that they were likely to seek impartial advice before making an investment. Fraudsters draw great comfort from such attitudes, often urging their targets to keep their offers secret in an attempt to prevent others from dissuading them from investing.

45% of over-55s said that they found investment opportunities more attractive if they knew of others who had made similar investments. Fraudsters sometimes exploit this syndrome by telling their targets that others wish to participate or have already benefited.

Meanwhile, 92% of the 'oldies' in the survey thought of 'cold calls' as a warning sign, but 19% were unaware that the promise of returns above the market rate (as with prime bank instruments) could also be a fraudulent tactic.

The common tactics used by fraudsters include:

• an offer of lucrative returns above the market rate;
• the downplaying of the risks that investors run;
• the use of flattery to make potential victims feel good, perhaps by praising them for being knowledgeable investors;
• an assertion that the deal is only available to the target, who ought to keep it a secret;
• an assertion (known as ‘social proof’ but actually nothing of the kind) that other clients have invested or want to invest; and
• pressure to invest in a time-limited offer.

The FCA advises consumers to:

• reject unsolicited contact about investments;
• check the Financial Services Register before investing, the better to see if the firm or individual is authorised;
• check the FCA's warning list of firms to avoid; and
• pay for impartial advice before investing.

Mark Steward, the FCA's head of enforcement, has added some sage advice to the exercise: "If in any doubt – don’t invest.”

In the last six months the FCA has received 2,748 reports of scams or unauthorised firms on its website. Last year, 261,547 people visited its ScamSmart website.