Investment scams are unfortunately commonplace, with fraudsters constantly devising new ways to deceive unsuspecting individuals.
The Financial Conduct Authority (FCA) receives thousands of reports of investment scams each year, resulting in millions of pounds in losses for victims.
To protect yourself from falling victim to an investment scam, it is essential to be aware of the common tactics used.
Unsolicited investment offers
If you receive an unsolicited investment offer, it is always best to be wary. Legitimate investment firms will never cold call you or send you unsolicited emails.
High-pressure sales tactics
Fraudsters often use high-pressure sales tactics to push their victims into making quick decisions. They may promise unrealistic returns or create a sense of urgency to make you act without thinking.
Unregulated investments
Be wary of investing in unregulated or unauthorised investments. These investments are not subject to the same oversight as regulated investments, and there is no guarantee that you will get your money back.
Complex investment structures
If an investment opportunity seems overly complex or difficult to understand, it is a red flag. Legitimate investments should be easy to understand and transparent.
Guarantees of high returns
No investment can guarantee high returns. If an investment opportunity sounds too good to be true, it probably is.
If you think you may have been the victim of an investment scam, there are a number of steps you can take:
- Contact Action Fraud either online or by calling 0300 123 2040. Action Fraud is the UK’s national reporting centre for fraud and cybercrime where you should report fraud if you have been scammed, defrauded or experienced cyber crime in England, Wales and Northern Ireland.
- Contact the FCA which is the regulator responsible for investigating investment scams. You can contact them online or by phone to report a scam.
- Seek legal advice. If you have lost a significant amount of money to an investment scam, you may want to consider seeking legal advice. A lawyer can help you assess your options and take legal action against the scammers.
By following these tips, you can help protect yourself from investment scams and keep your hard-earned money safe.