Investment scams

Get the low-down on fake investment scams that fraudsters use to steal your money.

 

Don’t let scammers cash in on your dreams

There’s no easy way to invest and make money. It takes time and effort to find a genuine deal that’s right for you.

Scammers often use social media platforms, like Facebook, and search engines, like Google, to promote fake investment opportunities. They often promise big returns which can be tempting.

 If an investment seems too good to be true, it’s probably a scam. 

Avoid investments that are too good to be true

Fake ads to ‘make easy money’

Have you seen offers to make easy money online or on social media? Fraudsters make up these deals to draw you into a scam. You can find out how safe an investment is with the FSCS Investment protection checker.

Fraudsters may use things like cryptocurrency to promise quick returns. But the only guarantee is that you’ll lose your money.

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

Long-term investment scam

If a fraudster wins your trust, they can set you up with a scam that takes your money over a long period of time.

You may believe you’re a client of a genuine company or adviser. But it’s all one big lie to steal your money.

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

Stay alert when talking to an ‘expert investor’

Be wary of sending money. Scammers may reach out, posing as investment experts. They might lure you into a cryptocurrency scheme with promises of quick, high returns, like doubling your investment in just weeks. While it sounds appealing, they often pressure you to transfer funds to a so-called secure account, only to vanish once they have your money, leaving you empty-handed. Always be vigilant and refrain from sending money to anyone you don’t know or trust.

Protect your personal information. A fraudster might approach you, claiming they can assist in setting up a worthwhile investment. To make sure you trust them, they may use genuine platforms. They might ask you to register and provide your login details so they can manage the investment on your behalf, or they could create an account using your personal information without your permission. Once they gain access, they can take control and steal your money. Always be cautious and never share your login or personal details with anyone you don’t fully trust.

Red flags to watch out for

Fraudsters hope people won’t do their research

Fraudsters may make an investment difficult to understand so you rely on them for help. If you question them too much, they may think you’re suspicious and stop all contact.

Always find out as much as you can and ask someone else what they think. Researching can help you to keep your money safe from a scam.

Before sending any money, check that the investment, company or adviser is registered on the FCA Financial Services Register.

You get an offer to invest that you weren’t expecting

If you get a phone call, email or text about an investment, it may be a fraudster.

They can get in touch using stolen contact details. Or they post adverts on Google, that asks for your details and then call you back appearing genuine.

The more a fraudster knows about you, the more chance they have in convincing you it’s real.

Fake social media profiles and posts

There are lots of investment scams on social media. Fraudsters message or post about deals that promise quick returns on your money. Watch out for fake comments and success stories that are all part of the scam encouraging you to invest.

Fraudsters may have hacked your friend’s account or created a fake one using someone else’s images to sell a scam. Be suspicious of any offer that guarantees a return on your money. Learn more about social media scams.

Fraudsters pretend to be genuine companies or advisers

Fraudsters may pretend to be someone trustworthy, like an adviser from an existing company.

They copy genuine names and paperwork and try to appear like experts. Sometimes, they use apps and other technology so you can follow your fake investment.

If you’re not sure about a website, use a checker, like the one on Get Safe Online.

They want you to pay right away

Fraudsters know that quick returns or 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.

You should also avoid making payments by bank transfer. It’s the same as giving them cash and you usually won’t get your money back. Learn more about advance fee scams.

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

Find out how fraudsters can use your details to win your trust.

Avoid scam calls Opens in the same tab

Scam emails and texts

Fraudsters use scam emails and texts to steal your details.

Avoid scam messages Opens in the same tab

Pension scams

Fraudsters can target your pension by pretending to be someone you trust.

Protect your pension Opens in the same tab

Advance fee scams

If you have to pay an advance fee for goods or services, make sure it’s not a scam.

Avoid advance fee scams Opens in the same tab

Protect your identity

Fraudsters want to steal your personal and banking details.

How to keep your identity safe

Protect your devices

Do you know how to keep your devices safe?

Learn about device safety Opens in the same tab

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

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

Find out how to spot and avoid scams, and how to report fraud.

Protect yourself from fraud

Stay scam safe

Find out how to spot and avoid scams, and how to report fraud.

Protect yourself from fraud