Investment scams: What to look out for & how to protect yourself.

Whilst many investment opportunities can be legitimate, it is becoming more and more common for people to lose money to investment fraud in the UK.

According to Action Fraud, in 2024 alone, £649 million was lost to investment fraud in the UK. This is a 13% increase from 2023 and does not include unreported fraud, which can account for a lot more of the losses.

In the first half of 2025, investment losses from fraud have risen to £620 million and are estimated to surpass the 2024 figure.

This shows that investment fraud is on the rise and is a major concern for potential investors in the UK.

What can you look out for before investing?

1. Advertising on social media / unsolicited phone calls – Scammers will often advertise on social media or call you out of the blue to promote their investments.
2. Unrealistic/guaranteed returns - High, fixed profits with little to no risk are almost always too good to be true.
3. Pressure tactics - Scammers often push investors to act quickly, claiming opportunities are limited or “closing soon.”
4. Unregulated firms - Many of these companies are not authorised by the Financial Conduct Authority (FCA) to provide investment services. Fraudsters often claim they are regulated, or in the process of being regulated.
5. Receiving returns Initially - It is common within investment and Ponzi schemes that fraudsters provide returns at the start. This is a common scam tactic to tempt individuals to invest more or introduce friends/family to the investment.
6. Withdrawal Fees - Scammers request ‘withdrawal’ or ‘tax’ fees in order for you to access your funds. No legitimate firm would request this.

It is essential to conduct thorough due diligence before making any investments, and to remain cautious of opportunities that appear too good to be true, as they may indicate potential risks.

If you have concerns over an investment you have made then you can use our free resource, AskRefundee - https://www.refundee.com/ask-refundee.

Remember to stay safe and always do the relevant checks before investing.