Investment scams
What is an investment scam?
An investment scam is when criminals trick you into handing over money by offering fake or misleading investment opportunities. These scams are designed to look legitimate and can be difficult to spot at first glance.
Scammers may contact you unexpectedly through phone calls, emails, social media, search engines or fake websites, often promoting opportunities with high returns and little or no risk.
How investment scams work
Criminals go to great lengths to appear genuine. They may use fake registration numbers, cloned company names, professional looking websites, or personal testimonies to gain your trust.
Some scams include access to fake online portals where it looks like your investment is growing. In reality, the money is gone and you may be asked to invest more.
Warning signs to look out for
Be cautious if:
- You are contacted out of the blue about an investment
- You are pressured to act quickly or told it is a time-limited opportunity
- The offer sounds too good to be true
- You are discouraged from seeking independent advice
- You see celebrity endorsed investment adverts on social media
Legitimate investments do not rush or panic you.
How you can protect yourself
Be wary of adverts online and on social media, as they can be fake – even if it seems like they’re endorsed by celebrities or friends. Do your own research and read reviews to make absolutely sure it’s genuine.
If an offer or investment seems too good to be true, it almost always is. Speak to someone you trust about it or even better, a qualified financial adviser.
Check the Financial Conduct Authority (FCA) Firm Checker to see if the investment is with a regulated firm or individual, is authorised and has permission to offer investments.
The FCA shows registered contact details for all genuine companies so you can call them directly to make sure the investment is legitimate. Whilst you’re there, check the FCA Warning List for cloned companies known to be operating without FCA authorisation.
Make sure the contact details match exactly, as scammers often impersonate real firms.