Investment Scams: What You Need to Know

What is an Investment Scam?

Investment scams are designed to trick people into handing over money by appearing credible, often using professional websites, testimonials, and marketing materials.

One of the common examples is a Ponzi Scheme, where new investors' money is used to pay returns to earlier investors until the scheme collapses, leaving everyone with losses. 

In today’s interconnected world, these scams have become increasingly sophisticated, even deceiving experienced investors.

Common tactics include cloning legitimate websites or promoting unregulated investments that promise returns far higher than typical savings accounts.

Investment scams have a common characteristic: they promise high returns with minimal risk. If an offer seems too good to be true, it likely is, and should be avoided.

How to spot an investment scam?

• Unsuspected Contact: If you were contacted unexpectedly through social media, email, phone call, or even in person? Unsolicited contact should always be treated with caution.
• Pressure Tactics: Be wary if you’re being pressured to make a quick decision. Legitimate companies will not rush you or make you feel uncomfortable about making a choice.
• Unrealistic Promises: Are you being promised unusually high returns with little risk? Such offers are often too good to be true. Remember, no investment is entirely risk-free, and legitimate companies will never encourage you to invest more than you can afford to lose.
• Verify Regulation: Check the FCA register to confirm that the company you’re dealing with is regulated. Always access this register directly through the FCA website.
• Verify Authenticity: Ensure you’re corresponding with the legitimate company you believe you’re dealing with. Fraudsters often impersonate regulated institutions and use spoofed contact details. Verify the company’s contact information through the FCA register and call them back using the numbers provided there.
• Pension Approaches: Be cautious if someone approaches you regarding access to your pension. Scammers often target pensions, so exercise extreme care.
• Remote Access Requests: If you’re asked to download software for remote access to your device by someone claiming to be an investment manager, stop immediately. Genuine investment firms will never request remote access. 

 How to protect yourself from investment scam ?   

If you're new to investing, you might consider consulting an FCA-regulated financial advisor for guidance. Additionally, should you suspect that you've been scammed, you can choose to contact Action Fraud.

Report Suspicious Activity: If you suspect fraud, please contact us immediately through our Live Chat or email us at customerfraudsupport@ifastgb.com.   

Learn more about how to stay safe from fraud: https://www.ifastgb.com/en/fraud-protection/understanding-fraud-scam