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 adviser 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.

Red flags to watch out for

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.

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 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

Learn how fraudsters use your details to win your trust.

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Scam emails and texts

Fraudsters try to steal your details through emails and texts.

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Pension scams

Fraudsters can pretend to be a company or adviser to target your pension.

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Advance fee scams

Before you pay an advance fee for anything, make sure it's not a scam.

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Protect your devices

Learn how to keep your devices safe.

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Protect your identity

Fraudsters might 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.

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

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

Protect yourself from fraud

Stay scam safe

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

Protect yourself from fraud