Fraudsters will often create online adverts. These will usually appear in web searches or as social media adverts
The adverts will typically offer unrealistic but enticing returns. Often these will be from illegitimate firms, but sometimes fraudsters will pose as legitimate organisations (often FCA registered firms) or offer investments in well known products, making the scam more convincing. These fraudsters will generally ask potential customers to register interest in the investment products before receiving a call from someone impersonating a genuine investment firm or broker.
Sometimes, more traditional methods will be used. Scammers will cold call members of the public and pressure them into acting quickly on an investment opportunity that seems too good to miss. The same tricks apply as online, and the callers can be very persuasive.
Common examples of investment scams
Usually the fraudster will be trying to convince you to move money into a fictitious fund or investment, often some form of interest paying bond. Examples may be:
Fake bonds, usually with a high rate of return. Sometimes fraudsters pretend to be legitimate companies, so you need to know how to spot a fake (see further below).
Cryptocurrency investment scams are on the rise. There’s a lot of attention around cryptocurrencies at the moment, and the FOMO (fear of missing out) can be hard to fight. Be on your guard when it comes to cryptocurrency investments, especially if you’re being guaranteed returns.
Carbon credits and other green investments which appeal to a person’s concern about the environment. Fraudsters will often pretend to be offering these to prey on people’s goodwill.
