Investment scams

Find out about the tricks fraudsters use to steal money through advertising fake investments.

 

Too good to be true

It’s not easy to make money when it comes to investing. Finding a genuine deal that’s right for you takes time and effort.

Scammers often take advantage of popular social media platforms like Facebook and search engines like Google to advertise fake investments. These offers can be dangerous because they often promise huge returns that aren’t genuine.

And as the saying goes, if it seems too good to be true then it probably is.

Don’t hand over your money

The long game

By treating you like a client of a genuine company and pretending to be an adviser, fraudsters can win your trust. Then they take 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.

Not so easy money

Deals you see online or on social media can be tempting. Fraudsters promise quick returns with things like cryptocurrency. But, it could be a quick way to lose money – not make money. The FSCS Investment protection checker can help you see how safe your investment is.

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

 

‘Expert investors’ aren’t always what they seem

Be careful with money transfers. Scammers may pose as investment experts, enticing you into cryptocurrency schemes with promises of quick, high returns. They often pressure you to send money to a so-called secure account, then disappear with your money. Always stay vigilant and avoid sending money to anyone you don’t know or trust.

Protect your personal information. Fraudsters may claim they can help you set up profitable investments, using legitimate platforms to appear credible. They might ask for your login details or create accounts using your information without consent. Once they gain access, they can steal your money. Always be cautious and never share your personal details with anyone you don’t fully trust.

Ask yourself these questions before investing

Is it a confusing deal?

A fraudster may try to confuse you or get flustered if you ask too many questions. Every investment is worth time and consideration.

You can check whether an investment, company or adviser is registered on the FCA Financial Services Register.

Is it an unexpected offer?

If you receive a phone call, email, or text regarding an investment, it could be from a scammer.

They might post ads on Google or social media to collect your details, then call you back, appearing to be genuine.

The more a fraudster knows about you, the easier it is for them to convince you that their offer is real.

Seen it on social media?

By creating fake profiles or hacking accounts, fraudsters can post investment deals or strike up a conversation with you, but they’re not real. And the success stories and comments you might see are all part of the scam.

Learn more about social media scams

Do you feel rushed?

Scammers will turn up the pressure and could ask you to send money to accounts on genuine apps and websites that they control and can access.

Never make payments by bank transfer. It’s like handing over cash and you usually won’t get your money back.

Learn more about advance fee scams

Do you know who you’re talking to?

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

Feeling unsure? Use a website checker like the one on Get Safe Online.

Investment scams are getting smarter

Here are 6 to watch out for.

Fake trading platforms

This involves fake online trading platforms offering access to shares, cryptocurrencies, foreign exchange or commodities. These platforms look professional, show convincing returns and may even allow you to withdraw a small amount early on – all designed to build trust. Once you invest more money, you might lose access to the platform, or you’re told you need to pay more fees to release your money. Your money was never invested at all.

Examples to watch out for

  • Guaranteed or unusually consistent returns.
  • Pressure to invest quickly.
  • Requests for unlock, tax or liquidity fees to withdraw money.

Celebrity and AI scams

Scammers are using AI to create videos and fake news articles featuring well‑known celebrities, or other financial experts. These deepfakes promote exclusive investment opportunities, particularly in crypto. The videos and articles often look highly convincing, but the celebrity has no connection to the investment and the opportunity doesn’t exist.

Watch out for:

  • celebrities promoting investments on social media
  • interview‑style articles hosted on websites you haven’t heard of before
  • videos with slightly unnatural facial movements or audio.

Clone firm scams

Clone firm scams involve scammers pretending to be real, regulated investment firms. They copy names, registration numbers and even genuine websites, changing only the phone number, email address or bank details. Because the firm name appears genuine, these scams can be extremely difficult to spot without checking contact details carefully.

Watch out for being:

  • contacted unexpectedly by a ‘regulated’ firm
  • asked to use contact details that don’t match official FCA or Companies House registers
  • told that FCA or Companies House details are out of date.

Social media and ‘finfluencer’ scams

Many investment scams now begin with ads, private messages or groups on social media. Scammers pose as successful traders or investors, sharing screenshots of profits and encouraging people to “get in early”. Private messaging apps and invite‑only groups are often used to create a sense of urgency.

Watch out for:

  • investment tips in WhatsApp, Telegram or Instagram
  • pressure created by countdowns, limited spaces, or fear of missing out
  • claims of high returns backed only by screenshots or testimonials.

Pump and dump scams

Pump and dump scams are a way that scammers unfairly influence prices in the market to their benefit. This is mostly seen in cryptocurrencies and low‑value or infrequently traded shares. Scammers aggressively promote a little‑known investment using bold claims or social media buzz to push up its price (the ‘pump’). Once demand and prices rise, they sell their investments at a profit (the ‘dump’), causing the price to collapse and leaving other investors with losses. These scams often spread quickly through online groups and can look like genuine market excitement rather than fraud.

Watch out for:

  • sudden excitement or publicity around unknown digital coins or shares
  • claims of having privileged information 
  • pressure to buy quickly before a price rises.

Rug Pull Scams

This is when the people behind an investment suddenly walk away with the money, leaving investors with something that is worth little or nothing. It is most common in cryptocurrencies and new online investment opportunities. At first, everything appears real. The investment is heavily promoted, prices may rise, and investors are encouraged to buy in quickly. Then, without warning, the scammers remove the money backing the project, restrict selling, or disappear altogether, causing the value to collapse overnight. Unlike pump and dump scams, investors are often unable to sell at all in a rug pull.

Watch out for: 

  • brand‑new investments with no track record
  • unclear information about who is behind the investment
  • a lot of excitement or publicity and limited detail about how the investment works
  • claims that selling is delayed, restricted or coming later.

Learn about other scams and how to protect yourself

Scam calls

Want to know how fraudsters can use your details to win your trust?

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Scam emails and texts

Find out how fraudsters try to steal your details.

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Pension scams

Fraudsters can pretend to be someone you trust to target your pension.

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Advance fee scams

Fraudsters often ask for an advance fee for goods and services. We explain how they might convince you.

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Protect your devices

Do you know how to keep all of  your devices safe?

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Protect your identity

Fraudsters may try to steal your personal and banking details.

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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.

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Have you been targeted by fraudsters

Contact us right away if you think you’ve been scammed. We can then guide you on what to do next.

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Stay scam safe

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

Protect yourself from fraud

Stay scam safe

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

Protect yourself from fraud