Investment scams
Criminals are experts at making their fake investment schemes look legitimate. They use a range of tricks to tempt you to part with your money.
They produce high quality, genuine looking adverts, websites and social media pages to give the impression they’re authentic and trustworthy.
They say the investments are risk-free, once in a lifetime opportunities or guaranteed to soar in value.
UK Finance data shows that £107.8 million was lost to investment scams in 2023.
On this page:
Step 1: Scammer will advertise an investment opportunity on social media or a website
You find an investment opportunity online, offering the possibility to make a lot of money, very quickly.
They sometimes include pictures of celebrities endorsing the investment such as Martin Lewis. This tricks people into thinking the investment is genuine.
Step 2: The fake website asks you to fill in a contact form
When you open the link from the advert, the investment scheme’s website looks very professional.
The website asks you to fill in a contact form to request more information.
You will then be contacted by someone pretending to be a trader or sent genuine looking details. They tell you to act fast to avoid missing out.
Step 3: The scammer convinces you to invest
The fake investment company will ask you to open a trading account and offer to help you manage it.
They may ask you to provide proof of identity documents in order to look legitimate.
Enticed by the offer, you invest your savings and wait to see the return on your investment. Some scammers will send you small amounts of money to begin with or use the fake investment website to trick you into thinking your investment is growing. This tempts you into investing even more money.
Step 4: Scammer persuades you to invest more money
Many people send small payments at first but when the trader shows them how well their money is doing, they are persuaded to invest more money.
Sometime later, you decide to withdraw the money from your investment but when you contact the trader they ask for another payment to do this or do not respond. All contact stops and your money has gone.
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Check who you’re speaking to is genuine
Always call any company you have contact with directly, using the details held for them on the Financial Conduct Authority (FCA) website, to make sure that the person you’re dealing with actually works for them and are genuine.
It’s also recommended to get independent financial advice before making any investment decisions.
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Do your research carefully
Search for reviews about the company to see if there’s any reference to it being a scam.
Check that the firm is registered as a UK company and check for directors’ names on Companies House or if they’re on the FCA register. Be cautious of companies based overseas as many fake investment companies are. This means they are not regulated by the FCA.
Watch out for clone companies. Criminals can set up fake companies which have a very similar name and details to the real ones to trick you.
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Never be afraid to say no
Do not be afraid to say no. Scammers may try to pressure you, but genuine companies will not, so never sign up to anything immediately.
Always take your time, ask questions and think twice.
Be firm, hang up and do not respond to any more calls or messages.
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