Youngsters being lured by get-rich quick scams

Young people saddled with vast student debts and struggling to get onto the housing ladder are being lured to invest in ‘get rich quick’ crypto schemes, a top funds manager has warned.

A survey by Schroders found that 68 per cent of financial advisers were concerned about young people investing in crypto and digital assets, more than three times higher compared with last year.

It comes after recent figures from the Financial Conduct Authority (FCA) showed the number of people investing –despite the watchdog warning they should be prepared to lose all their money – more than doubled to 5 million last year.

In some cases the concern expressed by financial advisers in the Schroders survey were because older clients are worried about their children frittering away their ‘hard earned cash’.

Gillian Hepburn, Schroders’ head of UK intermediary solutions, said it was no surprise people were investing in crypto with student debts topping £45,000, adding: ‘Who might not fall prey to get rich quick schemes if that’s what pressure they are under?’

The survey also revealed how savers were affected by the cost of living, and that 89 per cent of advisers had clients who adjusted their plans as a result of it.

The FCA figures showed crypto was most likely to be owned by men under the age of 45. More than half of adults aged 18-24 hold less than £100 while those aged 45 and above are more likely than other age groups to hold more than £1,000 worth or above.