Investors are being urged to be vigilant after an investment bond scam has emerged, whereby the fraudsters are pretending to be from Aviva Investors in order to dupe savers.

In an email, seen by FTAdviser, the fraudsters claim that Citibank is hosting an Aviva fixed rate bond at 6.125 per cent.

The email boasts that investors will receive more financial freedom, higher interest rates, monthly and quarterly returns, and no early exit penalties, and that their investment is fully protected by the Financial Services Compensation Scheme.

It states: “The fixed rate bond we are currently offering is not a new issue bond. In fact it is one of our long term bonds that started a long time ago in 2001 and will end in 2036.

“The reason the interest rates are so high is simply because when the bond started, interest rates were much higher. These rates are still being paid, this will continue until redemption 2036.”

It also claims that the investment is sold on a first come first served basis due to popular demand.

The email uses both Citibank’s and Aviva Investors’ branding and logos.

Aviva said it has reported the scam to Citibank and has taken action to alert the relevant law enforcement agencies and request the domains, which fraudulently use Aviva’s name, are taken down.

A spokesperson from Aviva told FTAdviser: “Unfortunately, this represents a sophisticated ‘clone firm’ investment bond scam, similar to those which has been used to impersonate over 25 financial…

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