What is investment fraud?
Investment fraud happens when criminals persuade you to put money into a fake or misleading investment opportunity. These scams can look convincing, with professional websites, online adverts, social media posts, fake reviews and people pretending to represent legitimate firms.
Fraudsters may offer fake opportunities in shares, funds, crypto, property, gold, carbon credits, wine, art or other high-value goods.
If you are asked to invest money, take a moment to stop and think. Could it be fake? It is OK to reject, refuse or ignore any request. Only criminals will try to rush or panic you.
How do investment scams work?
Criminals often make investment scams feel urgent, exclusive or low risk. They may contact you unexpectedly by phone, email, text, WhatsApp, social media or online dating sites. They may also use fake websites, cloned company names, fake online adverts or celebrity endorsements to make the opportunity appear genuine.
An investment opportunity may be a scam if you are contacted unexpectedly, promised high returns with little risk, pressured to act quickly, asked to keep the offer secret, or told to transfer money before you have had time to check the firm independently.
Criminals may also make small initial payments or ‘returns’ designed to build your trust and persuade you to invest more.
Check before you invest
Always check whether the firm is authorised by the Financial Conduct Authority before you invest. Use the FCA Firm Checker and search for the company yourself rather than following a link sent to you. If you cannot confirm the firm’s details, do not send money or share personal information.
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What are the warning signs of an investment scam?
- You are promised high or guaranteed returns with little or no risk.
- You are contacted out of the blue about an investment opportunity.
- You are told the offer is exclusive, time-limited or only available to a small number of people.
- You feel pressured to make a quick decision or transfer money immediately.
- You are asked to keep the investment secret or not speak to your bank, family or friends.
- The company, website or advert looks professional but you cannot verify the details independently.
- You are asked to click a link in an advert, message or social media post to invest.
- You are encouraged to invest more after seeing fake returns in an online portal.
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What to do if you think you have been targeted
- Do not send any more money.
- Contact your bank immediately using a trusted number, such as the one on the back of your card, or by calling 159.
- Save evidence, including messages, emails, screenshots, phone numbers, website addresses and payment details.
- Be alert to follow-up scams. Criminals may contact you again pretending they can recover your money for a fee.
- Report it to the police at reportfraud.police.uk or by calling 0300 123 2040.
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What should I do before investing money?
Before investing money, Take Five to stop and think before making a decision or sharing financial information. Challenge whether the opportunity could be fake by researching the company independently, checking the FCA Firm Checker and avoiding links in adverts or messages. Speak to someone you trust before making a payment.
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Are crypto investment offers on social media risky?
Yes. Crypto investment offers on social media can be high risk and are often used in fake adverts, cloned firm scams and celebrity endorsement scams.
Cryptoassets can be highly volatile and, in the UK, most are not regulated like other financial products. This means you could lose all your money and may not be protected by the Financial Ombudsman Service or Financial Services Compensation Scheme if something goes wrong.
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Can scammers impersonate legitimate investment firms?
Yes. Criminals can clone genuine firms, create fake websites and use convincing documents. Always check contact details independently and do not trust details provided in an unexpected message or advert.
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What if I have already sent money?
Do not send any more money. Contact your bank immediately and report it to the police at reportfraud.police.uk or by calling 0300 123 2040. Do not pay anyone who says they can recover your money for a fee, as this may be another scam.
