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Investment scams are one of the most common tactics used by scammers to steal money or cryptocurrency. These schemes are made to look just like real investment opportunities for crypto trading, stock market trading or even gold, fine art, or whiskey. Investment scams often promise minimal risk and high returns, making them seem too good to resist. If an investment opportunity sounds too good to be true, it almost certainly is.
Investment scams can be one of the most difficult types of APP (Authorised Push Payment) fraud to spot and avoid. Unfortunately, they are also one of the most damaging. The UK reports an average of over 10,000 cases yearly, resulting in a loss of more than £110 million in 2022 alone – a trend that looks set to continue.
A legitimate company offering an investment opportunity will never reach out to you first. If someone contacts you on social media, through a cold call, or via an unknown email, you should avoid them.
A good and legitimate investment company will never pressure you to act quickly. Fraudulent investment firms often use limited-time offers, discounts, or bonuses to entice people to sign up quickly.
Before beginning any contact, you should always research a company and ensure they are authorised by the Financial Conduct Authority (FCA). You should also be wary of fake investment websites and companies that use near-identical names or cloned websites of legitimate platforms.
The easiest way for scammers to lure in their victims is to promise amazing returns without any risk. If the offer sounds too good to be true, it probably is. Investing can either be low-risk or high-reward, but rarely is it both at the same time.
Financial firms operating in the UK must be authorised and regulated by the FCA. Using an unauthorised company means you have fewer protections in the event something goes wrong. You can check if the company is registered with the FCA online.
Cryptocurrency – often referred to as ‘crypto’ – is a type of digital currency that is mainly used for investments. There are thousands of distinct types of cryptocurrency, with Bitcoin, Ethereum, and Tether being some of the most popular. If you decide to invest in cryptocurrency you should do so using a reputable crypto provider.
At CEL Solicitors we have helped many people recover their losses after falling prey to crypto investment scams.
You may have heard of cryptocurrency being “decentralised”. This means that it is not attached to any one country, bank, or company. This is one of the greatest benefits of cryptocurrency, but it is also one of the biggest issues. Recovering money or assets lost to crypto scams is possible, but it is more difficult than traditional fraud.
Trading scams are fraudulent schemes which involve financial markets. Scammers trick investors into “investing” large sums of money with “guaranteed returns”. These schemes are often used by unlicensed trading and brokerage firms operating without the authorisation of the Financial Conduct Authority (FCA).
Common scams include forex and stock market schemes and binary options fraud, often involving fake brokers or misleading information.
Tech-savvy scammers can duplicate legitimate websites to trick their victims into giving away sensitive information or making payments.
In many cases, these cloned sites look identical to legitimate platforms and claim to offer the same functionality. At CEL Solicitors we have seen many examples of scammers cloning legitimate investment platforms to successfully steal banking information.
Common examples include fake online marketplaces, phishing sites posing as banks, or fraudulent investment platforms.
Just like with gold and diamond scams, criminals trick people into investing in fine wine and whiskey to steal their money.
These products are unregulated which means that they are not backed or protected by the FCA.
In 2023 the City of London Police urged people to take care online after social media advertisements offering investments in whiskey casks were found to be irresponsible.
A land or property investment scam usually involves criminals claiming to guarantee high returns on investments in real estate.
The scheme may inflate property values, make fake promises of developments, or claim to offer/represent non-existent properties.
Scammers use pushy sales, fake papers, or complicated investments to deceive their victims.
These scams target investors looking for profitable real estate deals, leading to monetary loss and legal consequences for participants.
A pension scam tricks people into giving their retirement money to fraudsters. The scammer offers large profits and safety in exchange for accessing and using the pension funds.
Scammers may use cold calling, fake investment opportunities, or misleading information to convince retirees to transfer their pension savings into risky or non-existent investments.
These scams exploit retirees’ desire for financial stability in their golden years. This often results in significant financial losses, leaving victims without their hard-earned retirement savings.
A fraudulent investment recovery scam preys on individuals who have already lost money to investment fraud.
Scammers pose as recovery agents or law firms, promising to recover lost funds in exchange for upfront fees.
In many cases, these scammers are the same as those who committed the initial scam. Using the information gathered in the original scam, they can retarget victims and appear more legitimate.
They take advantage of victims, promising to help them get their money back, but then disappear after taking even more.
These scams make financial losses worse for victims already struggling, continuing the cycle of exploitation in investment fraud.
Woman loses £11,000 of retirement savings to scam that used Martin Lewis in its adverts
Source: Northumberland Gazette
York father scammed out of £12k says ‘people like me never think we’ll be targeted’
Source: Yorkshire Post
'I broke down in tears': Retiree loses £80,000 to fraudsters while dad was dying of cancer
Source: The Express
Scammers create convincing profiles on platforms like Facebook, Instagram, and Twitter, displaying luxurious lifestyles with images of expensive items. They use these profiles to promote investment opportunities in cryptocurrencies, foreign exchange, or binary options, enticing individuals with the promise that they too can live an easy life of luxury.
Scammers develop fraudulent websites or clone legitimate ones to deceive victims into believing they’re dealing with reputable financial advisers or investment platforms. They often fabricate positive reviews and testimonials to enhance credibility. Additionally, they share links to social media or YouTube tutorials to lend an air of legitimacy to their schemes.
Scammers employ phishing tactics through emails, text messages, or phone calls, exploiting urgency and FOMO (fear of missing out) to pressure victims into making investments quickly. They may falsely claim limited time offers or extraordinary profits to manipulate individuals into divulging personal information or transferring funds hastily.
To report an investment scam, gather details of the scam, including what was promised, why it seemed legitimate, and how you realised it was a scam. Note how the scammer targeted you and any contact or bank details you have. Report to your bank and the police or Action Fraud.
If your bank is unwilling to help you get your money back, you can seek help from an experienced fraud recovery firm.
At CEL Solicitors we have helped thousands of people to recover their money following an investment scam. Whether you have lost money or crypto assets, we can help. Start your recovery by calling 0808 273 0900 or claiming online.
Online scammers exploit the popularity of cryptocurrencies to steal money
Scammers often pose as banks, the police, government, or other trusted organisations
Fraudsters offer fake investment opportunities with promises of high returns
Criminals dupe victims into paying upfront for goods or services.
Online scammers exploit emotions, tricking victims into sending money
Victims unwittingly authorise payments, deceived by fake sellers in purchase scams
Individuals or businesses pay fake invoices, inadvertently sending funds to the scammer
Scammers offer work-from-home opportunities with up-front costs and withdrawal fees
Our team of recovery experts are on hand to help you get your money back.
