Key Highlights
- Fraudsters often look for people on social media platforms. They post fake investment advertisements which offer high returns to get your attention and polished websites to gain your trust.
- Some scammers cold-call potential victims by phone, using persuasive scripts and posing as professional brokers to gain trust.
- Older adults are being targeted for investment scams. If you have elderly loved ones, share this article with them to help keep their finances safe.
- Red flags include: guaranteed returns, pressure to act quickly, being asked to send money to a personal account, and firms not listed on the Financial Conduct Authority’s Financial Services Register.
- Always verify a company’s legitimacy using trusted tools:
- If you’ve been scammed, know that support is available. Visit Remitly’s guide: What To Do After Getting Scammed
Introduction
Investment scams are getting more clever. It can be hard to know which offers are real and which are not. Scammers often present themselves as trustworthy financial professionals, offering high returns with little or no risk. Their websites may look polished and professional, complete with logos, testimonials, and fake registration numbers to make them seem legitimate. In some cases, they claim to be based in the UK, but then ask you to send money overseas—often to a personal bank account. They may promote fake cryptocurrency deals, overseas property investments, or other risky financial products—all designed to earn your trust and convince you to send money.
What are Common Types of Investment Scams?
Investment fraud shows up in many ways, but it is always about scammers trying to take your money. These people go after those who do not see it coming. They may cold-call you, speak with confidence, and say the offer is exclusive or urgent. Scammers use charm, create a sense of urgency, and often talk quickly, use complex financial terms, or overload you with information to make their offer sound more legitimate and harder to question. You need to watch out for offers that say you can quickly get money from stocks, real estate, or gold.
Some scams, like the ones that are about cryptocurrencies or high-yield investments which can be worth a lot, sometimes look just like real advisers or real companies. This is how scammers and fraudsters make everything feel real to you. If you know about their tricks, you can keep yourself safe from scammers and fraudsters who want to take your money or information.
Ponzi Schemes and Pyramid Schemes
Ponzi schemes revolve around a central operator who promises high returns on investments. Victims are led to believe their money is being invested legitimately, but in reality, no real investments are made. Instead, the operator uses funds from new investors to pay earlier ones, creating the illusion of a profitable venture. Participants are passive—they don’t need to recruit others. The scheme unravels when the flow of new money stops, often resulting in major losses for later investors.
Pyramid schemes, by contrast, rely on a structure where participants must actively recruit others to earn money. Each new recruit pays an entry fee or investment, which flows upward to those who joined earlier. The people at the top of the pyramid profit the most, collecting money from multiple levels below them—often without doing much themselves. Since there is usually little to no actual product or service, the scheme depends entirely on constant recruitment. Once the supply of new recruits dries up, the pyramid collapses, and most participants—especially those near the bottom—lose their money.
Scams That Offer High Returns but Deliver Nothing
Some investment scams promise incredibly high returns in a short amount of time—often with no risk and minimal effort. These scams may look like legitimate opportunities, with sleek websites, fake testimonials, and supposed “success stories.” But in many cases, there is no actual investment activity happening at all.
Unlike Ponzi or pyramid schemes, which sometimes pay early participants using money from new victims, these scams take your money and provide nothing in return. Victims may be asked to send funds through wire transfers, cryptocurrency, or even to personal bank accounts, only to find that the person or company disappears entirely. Scammers may even go as far as creating a fake online investment account for you, showing fake earnings to keep you invested—until you try to withdraw your money. At that point, they stop responding or shut down the website altogether.
Who Do Investment Scammers Target?
Scammers often target people who may be more trusting, unfamiliar with digital financial tools, or vulnerable to high-pressure tactics. Unfortunately, this means older adults are frequently at risk. Many of these scams are designed to sound professional and reassuring—especially to those who may be managing their retirement savings, supporting family abroad, or looking for secure ways to grow their money.
Fraudsters may call directly by phone, send convincing emails, or even pose as helpful financial advisers. They might say things like “Your spouse already set this up” or “You’ve been pre-approved for a special opportunity”—language specifically crafted to sound legitimate and reduce doubt.
If you have an elderly parent, grandparent, neighbour, or loved one who handles their finances independently, take a few minutes to share this article with them. A quick conversation could help them avoid a costly scam—and give them the confidence to ask questions before making financial decisions.
Red Flags to Watch Out For in Investment Offers
Spotting red flags early is important to stay away from fake investment opportunities. If you read words like “guaranteed returns” or if you are offered something with no risk, that can be a sign of a scam. A lot of fraudsters will share paperwork that is not complete. They may also try to rush you into making a choice.
Unsolicited offers can come in through email, over the phone, or be shown as exciting ads on social media. These are signs you need to watch for when looking at investment opportunities. Before you do anything, make sure to check if the offer is real. A good investment will not push you to hurry or feel rushed. Take your time to think about it and be careful.
Scammers try to make the offer feel as real as possible. A scammer can be charming and may use fake papers or claim to be based in the U.K. They may even say someone you know has already invested. Be careful with any investment that asks you to send funds to a foreign bank account—especially if you’re being asked to transfer money in an unprofessional way, such as to a personal bank account under your own name. This is a strong sign that the offer may not be legitimate.
Guaranteed Returns with No Risk
Claims that say you will get sure returns with no risk often mean that fraudsters are behind it. They use the fact that people want to feel safe about their money to trick them. If someone tells you that an investment has no risk, you should watch out. All investments have some risk. Fraudsters might try to trick you with fake success stories. These tricks, along with their false promises, can make a scam look real and tempting.
It is important to stay alert and not trust new things too fast. You should ask for clear details about how the investment works. Sometimes what looks like the best offer is not real. Always take your time to check before you make a choice. If in doubt, ask a trusted loved one or friend for a second opinion.
Unregistered Investment Firms
Unregistered investment firms are a major red flag. These companies are not listed with trusted regulators like the Financial Conduct Authority in the UK.
Scammers may claim their offer is “private” or “exclusive” to avoid scrutiny. They might even provide glossy brochures or official-looking documents to make the investment seem legitimate and trustworthy.
Steps to Take Before Investing
Protecting your money begins when you make smart investing choices. Before you put your money in any investment, be sure to look at the details of the investment company or advisor.
Verify the Credentials of the Investment Firm
Checking credentials is one of the most important steps before putting your money into any investment. In the UK, you can use the FCA’s Financial Services Register to check whether a company or individual is authorised to offer financial services.
Scammers often try to appear legitimate by copying the names, logos, and websites of real companies. They may send you professional-looking documents or even create fake investment accounts to gain your trust. These tricks are designed to make it harder for you to tell real from fake.
To stay safe, always do your own checks. Here are some helpful tools:
- IOSCO Scam Alerts Portal – A global tool to check if a company or firm has been flagged by international regulators.
- Get Safe Online’s Website Checker – Use this to scan any investment website for potential signs of a scam.
Don’t skip this step. Take the time to do your research before you work with any company. Make sure they’re properly licensed and authorised. It’s one of the best ways to protect yourself and your money.
Conclusion
To sum up, you can lower your risk of falling for investment scams if you stay alert and act early. Get to know the common investment scams that are out there. Be on the lookout for any warning signs. Always verify investment opportunities before you put your money in. If something sounds too good to be true, it likely is not real. Do your own research every time. If you feel unsure, seek advice from someone you trust or a financial advisor. The safety of your money matters most. Take the right steps to keep your investments safe.
Frequently Asked Questions
What should I do if I suspect an investment offer is a scam?
If you think this is a scam, stop talking to the scammer right away. Save all the emails, screenshots, and anything else you get, so you have proof. Report what happened to Action Fraud , your bank, and any other financial institution which may be involved. If you sent money using Remitly, please tell us what happened by reporting it through our help center.
If I was a victim of a scam what resources are available?
You’re not alone, and there are steps you can take. For a detailed guide on what to do after being scammed—including how to report, recover, and protect yourself—visit Remitly’s support article:
👉 What To Do After Getting Scammed
This resource includes links to trusted reporting channels, emotional support, and tips to avoid further fraud.