Investment scams
Be wise. Don’t fall prey to too-good-to-be-true, high-pressure, deadline-driven offers.
What is an investment scam?
An investment scam is a fake - but extremely appealing and highly convincing - investment opportunity. Fraudsters will impersonate real people from genuine financial services firms over the phone, email, online and post. Known as 'clone firms' they’ll do all they can to get you to invest - fast. You can read more about clone firms here.
The coronavirus outbreak has affected all kinds of companies, including those listed on the stock market. As a result, markets have been volatile and are likely to remain so for a while. It can also lead to an increase in scams, as unscrupulous people try to take advantage of the situation.
Fidelity will never cold call you offering investment opportunities.
Spotting and avoiding investment scams
If you think an offer is suspect, stop for a second. Run through this check list. And never give up your bank details or make payments.
Unrealistic returns
The promise of high returns from alternative or unregulated investments should raise alarms.
Unexpected contact
Any cold calling by phone, email, online or post should be treated as highly suspicious. Don’t forget, you can always hang up.
Flattery and time pressures
If it’s an invitation-only opportunity or you need to act quickly. They may even ask you to keep quiet about it too. Be very wary and don’t make hasty decisions.
Professional
Fraudsters will use glossy brochures, websites, fake reviews, or trained callers with scripts - … anything they can to appear convincing. Check on the FCA register to see if the firm is registered.
On the list
Fraudsters share lists of previous scam victims to commit recovery fraud. They contact people on these lists, to recover lost monies, or sell their worthless investments - and charge an advance fee.
Common investment scams
These include anything from carbon credits and fine wines, to storage, land and gold and jewels, as well as investments in shares, bonds, cryptocurrency, foreign exchange and binary options.
Helpful resources
Don’t delay. If you’ve received an email or call from someone posing as Fidelity contact us on 0800 3 68 68 68. Contact your bank immediately if you’ve given out your details or made a payment - there may still be time to do something. Here are some other useful contacts.
Action Fraud
Action Fraud is the UK’s national reporting centre for fraud and cyber crime
ScamSmart
To help you avoid investment scams and check if a firm is genuine
Take Five
A national campaign offering advice to help consumers protect themselves against financial fraud
Other threats to watch out for
Fraudsters are highly committed to their cause. By knowing what they’re up to, you can play them at their own game.
Suspicious emails, texts and phone calls
Learn how to spot a fraudulent email, text or phone call, so you’re not reeled in.
Pension fraud
All that glitters isn’t gold. Discover how to dig deeper and protect your pension with our tips.
Financial abuse
Find out more about criminal influence, to ensure you’re in control of your financial purse strings.
Identity theft
Look beyond the disguise. Impersonation can be the first step to someone stealing your assets.
Deepfakes
Don’t believe everything you see or hear! Understand the tell-tale signs that could help you identify a deepfake.