Investment scams

Fraudsters can create fake investments to steal your money. Here’s what to look out for.

Tempting fake investments

Making money on investments isn’t easy. You need to put in time and effort to find a genuine deal that works for you.

Social media platforms, like Facebook, and search engines, like Google, can be high risk for investment scams. Scammers often use these sites to promote fake investment opportunities that promise high returns.

If it seems too good to be true, it probably is. 

Does it seem too good to be true? 

Long-term investment scam

Fraudsters can pretend to be an advisor and treat you like a client of a genuine company, winning your trust. Then they’ll steal your money over a long period of time.

Common investment scams offer things such as precious gems like diamonds, gold, wine, land abroad, energy and cryptocurrencies such as Bitcoin.

Making easy money

Fraudsters can tempt you with deals online and through social media. Use the FSCS investment protection checker to see how safe an investment is.

They may promise quick returns with things like cryptocurrency. But it’s not real and you’ll lose money.

Remember, if you invest in cryptocurrency, the Financial Services Compensation Scheme can’t protect your money.

Be careful what you share with ‘expert investors’

Avoid sending money. A fraudster may call, pretending to be an expert on investing. They might tempt you into a cryptocurrency investment with promises of high returns, like doubling your money in weeks. It all sounds great, but they pressure you to transfer money to a secure account, then disappear once the money is sent, leaving you with nothing. Always be cautious and never send money directly to someone you don’t know or trust.

Don’t share your personal details. A fraudster might contact you and say they can help you set up and manage an investment with high returns. To make it seem legitimate, they use genuine platforms. The fraudster may ask you to register and share your logon details so they can manage the investment for you, or they will setup an account using your personal information without your consent. Once they have access, they take control and steal your money. Always be cautious and never share your login details or personal information with anyone you don’t trust.

Do your research

Fraudsters make investments hard to understand so you’ll rely on them for advice. Find out as much information as you can, ask questions and get another opinion. You can also check that the investment, company or adviser is registered on the FCA Financial Services Register

Be alert for unexpected offers

You’re more likely to think a fake deal is genuine if the fraudster knows a lot about you. They could contact you by phone, email or text using stolen details.

They may also post fake adverts on Facebook and Google, asking for personal and financial information to learn more about you. Never share your details with someone you don’t know or trust.

Be wary of social media

Fraudsters hack accounts or create fake ones to message or post about deals that promise quick returns. You might see fake comments and success stories – but it’s all part of the scam. Any offer that guarantees a return is suspicious.

Learn more about social media scams.

Don’t pay straight away

Quick returns and short deadlines can force you into a fast decision. They may ask you to pay an account on a genuine site or app that they control or can access. Avoid making payments by bank transfer. It’s just like giving them cash and you usually won’t get your money back.

Learn more about advance fee scams

Know who you’re talking to

Fraudsters copy genuine names and paperwork of existing companies or advisers to appear like trustworthy experts. They could even use apps and other technology so you can follow your fake investment.

If you’re feeling unsure, use a website checker like the one on Get Safe Online.

Learn about other scams and how to protect yourself

Learn about the latest scams

Fraudsters are always looking for new ways to try to steal your details and money. Discover which scams are common right now.

Go to latest scams

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Discover how to spot and avoid scams, and how to report fraud.

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Stay scam safe

Discover how to spot and avoid scams, and how to report fraud.

Protect yourself from fraud