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Scam guide

Investment scams

Interested in learning about crypto scams? Check out our crypto scam guide.

Top tips to avoid investment scams

An investment scam is when someone tricks you into giving them money for fake investments. They promise money back with little or no risk. In reality, they take your money and you can end up with nothing.

Here are some top tips to keep safe:

  1. Do your research: check out the company or person offering the investment. Check their background and look for reviews or complaints online.
  2. Be wary of high returns: if an investment promises much higher returns than usual, it's likely a scam. High returns often mean high risks. Look up historical average returns for the specific investment you are considering.
  3. Visit the FCA’s (Financial Conduct Authority) website: quick checks on their ScamSmart investor page can help you spot scams.
  4. Don't be rushed: scammers rush you to make quick decisions. Take your time to make smart choices.
  5. Speak to a professional: talk to a financial advisor before investing. They can help you avoid scams. Do not trust someone who contacts you unexpectedly or via a cold call.
play video

Even well-meaning friends can pass on investment tips without realising they’re caught in a scam. This video shows why taking a moment to check can make all the difference. 

Once you're done, scroll down to learn more about the different types of investment scams and how to spot one.

Signs of investment scams

Scammers use many tactics to trick you.  Contact us, using the number on the back of your bank card if you think you've been caught out by any of these tactics:

  • Out of the blue offers: be wary of investments you did not ask for, especially from phone calls, emails, or social media.
  • Secrecy and complexity: if the investment is hard to understand or the person is secretive, it’s a warning sign.
  • Guaranteed returns: no investment can promise a return. "Risk-free" investments are usually scams.
  • Unlicensed Sellers: check if the seller is licensed. Illegal sellers are often scams. Check the FCA list of unauthorised businesses which is updated regularly.
  • Deepfakes: scammers can use artificial intelligence (AI) to make fake videos of celebrities promoting their investments. Check their official website or social media account to verify.

Scam watch: "Pump and Dump" schemes are on the rise

Common investment scams