A study by the city regulator revealed the low interest rate environment was a key driver behind 4 in 10 over 55s moving their money out of savings into investments. Of these, over a quarter (26%) invested in high-risk, unregulated investment products, which are often used by scammers to cheat people out of their money.

The FCA said 27% of investment fraud victims had bought an unregulated product through an unauthorised firm.

It is urging retirees to be extra vigilant if contacted by unauthorised investment firms.

Mark Steward, director of enforcement at the FCA, said: “You don’t need to be gullible to lose money to a scam or fraud. Fraudsters target financially sophisticated people too, who often don’t like to ask what might sound like silly or basic questions.

“If you are contacted out of the blue about an investment opportunity that sounds too good to be true then it probably is. We would urge you to be sceptical.”

Unregulated products bought through an unauthorised firm offer no protection from the Financial Ombudsman Service or Financial Services Compensation Scheme if things go wrong.

The FCA report also revealed a rise in the number of cold calls retirees received from unauthorised investment firms.

Three in ten reported being contacted by a firm offering investments in the last 12 months with nearly 4 in 10 receiving as many as three calls.

FCA advice to avoid scams:

-Be sceptical
-Be suspicious
-Ask questions
-Do your own check before investing
-Check the FCA ScamSmart website, FCA warning list and FCA register
-Report any cases of fraud or suspected fraud