New plans to ban cold calls for financial products including cryptocurrency schemes, mortgages and insurance have been set out in a new consultation by the Government.

A special support service for victims of fraud has also been expanded to cover all 43 police forces in England and Wales.

The eight-week consultation will cover proposals to ban cold calls offering any financial products, to clamp down on fraudsters attempting to trick people into buying fake investments. Once in force, people receiving a cold call offering these types of products will know it is a scam, cutting down on the number of fraud victims.

Fraudulent investment schemes represent a significant threat to the UK economy, consumers, and society, with victims losing £750m across 2022/23, according to data from the City of London Police.

“We will ban cold calling for all consumer financial services and products, so the public can be sure that it’s not a legitimate firm if they get a call about a financial product out of the blue without their consent,” the Economic Secretary to the Treasury, Andrew Griffith, said. “We want people to feel confident to put the phone down and report these illegitimate calls.”

A specialist team which provides support to victims of fraud, known as the National Economic Crime Victim Care Unit, has also been rolled out to all 43 police forces across England and Wales since the Fraud Strategy was announced.

Part funded by the Home Office, this service has existed as part of City of London Police since 2015, and is estimated to have stopped more than £2.8m being lost to fraud. Last year, its teams supported more than 113,000 victims and its rollout to all police forces will ensure more people receive the help they need.

“Scam cold calls have become a begrudgingly accepted part of everyday life, causing financial and emotional distress to those who fall victim,” commented senior personal finance analyst at interactive investor, Myron Jobson. “Any effort to prevent fraudsters from infiltrating their way into people’s lives is welcome.

“Scammers are adept at tapping into the cultural zeitgeist and exploiting the fear of missing out disposition to create believable stories that convince you to give them your money or personal details.

“As well as a pounds and pence cost, falling victim to a financial scam has a broader psychological and emotional impact that can linger and cause distress well after the scam is over. Victims may feel violated and anxious, as their privacy is invaded, and they fall victim to deceitful tactics.”

Head of retirement policy at AJ Bell, Tom Selby, said: “For this cold calling crackdown to work we need two things: tightly worded legislation, to ensure nefarious contacts are specifically targeted, and a legitimate threat of enforcement where someone breaks the new rules.

“The plans also need to go hand-in-hand with greater responsibility being taken by internet giants like Google for paid-for scam adverts, something which the Online Safety Bill can hopefully bring into UK legislation.”

He added: “The grim reality is that, even with new rules and tough enforcement, scammers will continue their attempts to plunder people’s hard-earned savings. It is therefore vital, regardless of what the Government does, that Brits keep their wits about them and are cautious when they are contacted out of the blue by someone they don’t know about their finances. Much of this is common sense, but it could save you from financial misery.”

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