Investment scams are, unfortunately, on the rise in the UK, making it more important than ever to protect your hard-earned money.
The digital age has brought plenty of opportunities to savers and investors, but it has also equipped scammers and fraudsters with a slew of new tools and tactics, and they often blur the line between genuine opportunities and dangerous traps.
The effects of scams on one’s personal finances can be devastating. For example, the Annual Fraud Report from UK Finance notes that consumers lost £1.14 billion to financial criminals, despite the fact that there has been some progress in fighting fraud.
Moreover, while it is possible to get your money back after falling victim to a scam, it’s not a guarantee.
Here, being proactive and learning how to spot investment scams and what you can do to protect yourself from fraud could be more beneficial in the long run.
The latest figures from the UK Finance’s Annual Fraud Report offer insights into the level of scam activity taking place
While authorised push payment (APP) fraud losses have dropped by 20% due to improved detection, scammers are finding new ways to target consumers.
- Notably, remote fraud purchases (when someone uses stolen or fraudulent payment information) increased by 22% in 2024.
- Overall fraud cases rose by 12%, equalling 3.31 million cases.
- Digital fraud is swiftly becoming the most common form of online crime, and accounts for 50% of all cases.
The truth is, fraudsters are adapting, focusing instead on high-volume, low-value attacks and exploiting weaknesses in online systems.
Artificial intelligence (AI) also has a role to play in online fraud, particularly through the use of large language models (LLMs) and generative forms of AI, which can create realistic-looking images, video, and even mimic a person’s voice.
The use of AI could make it quicker, easier, and cheaper for fraudsters to execute their plans, which is why learning how to spot a scam is becoming increasingly important.
5 tactics fraudsters are using in 2025
| Scam tactic | How it happens |
| Impersonating someone you know, a trusted business, or even the government | Fraudsters continue to impersonate legitimate businesses, government bodies, and well-known brands or celebrities. They do this to gain your trust. They might clone websites, use official-looking logos, or even spoof phone numbers to improve their legitimacy.
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| Offering too-good-to-be-true investment returns | The allure of high returns with little to no risk remains a powerful tactic for scammers. Here, they promise unrealistic profits, which often claim to exceed typical market performance, as a way to entice their victims. For example, a scammer could promise sky-high returns if you transfer your pension to a new provider, aiming to steal this money from you for good.
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| Using pressure tactics | Scammers will often create a sense of urgency, insisting you “act now” to secure a limited-time offer, a bonus or discount, or even to avoid further costs.
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| Unsolicited offers and secrecy | Fraudsters may claim an offer is only for you, or ask you to keep it a secret from those around you, which can add to the illusion that this is a unique opportunity. However, this aims to isolate you and discourages you from seeking external advice.
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| Quishing | This is a growing trend, where fraudulent QR codes direct victims to fake websites or automatically download malicious software to your device. In fact, Action Fraud reports that almost £3.5 million was lost to quishing between April 2024 and April 2025. |
All this being said, scammers are becoming increasingly good at hiding their true motives.
Doing your research and relying on your intuition can be of great help.
Spotting the red flags before you become a victim
Protecting your wealth starts with recognising the warning signs. Diligence and scepticism about so-called “opportunities” could help you avoid investment scams.
- Exercise caution if you receive an unsolicited call, email, or message about an investment opportunity.
- If an offer guarantees significant returns with no risk, it’s almost certainly a scam. Investments always carry some level of risk, even if it’s low.
- Scammers want you to make a hasty decision, so be aware of any pressure to act quickly. Legitimate firms should allow you time to consider the proposal and seek advice.
- A lack of clear information or evasive answers to your questions can be a red flag, particularly if the person avoids direct questions.
- Scammers often ask for payments via bank accounts, cryptocurrency, or gift cards, rather than standard, traceable methods.
- A licensed financial professional will never contact you out of the blue, so if you hear from someone you haven’t approached yourself, exercise caution.
- Poorly written emails or other documents can be a sign of a scam. Watch out for grammatical errors, typos, or unprofessional language.
Ultimately, if your gut is telling you that something doesn’t feel right, be sure to listen to it.
Learn some essential steps to help safeguard your finances
Take Five, a national campaign that aims to provide straightforward financial fraud advice, has a simple three-step mantra you can follow if you’re presented with an “investment” opportunity.
- Take a few minutes to consider the offer before parting with your money or information. Don’t let yourself be rushed or pressured into making a decision.
- Does the offer sound too good to be true? It very well might be. Take Five states: “Only criminals will try to rush or panic you.”
- If you believe you’ve been scammed, contact your bank and report the crime to Action Fraud.
If you’re ever in doubt or simply want to check that a business or opportunity is legitimate, you can verify the firm’s authorisation with the Financial Conduct Authority (FCA).
You can use the Financial Services Register to ensure the firm and individual offering the investment are authorised to do so.
You can also find further information on the FCA’s warning list, which provides a record of firms operating without authorisation or that have been identified as scams.
Finally, before making any significant financial decisions, speak to a qualified and independent financial planner.
Secure your financial future by seeking advice
Protecting your wealth often requires proactive awareness and diligence. While scammers are constantly evolving their tactics, when armed with the right knowledge and tools, you can significantly reduce your vulnerability.
We can help empower you with the information you need to make informed decisions and act as a sounding board if you have questions about a potential opportunity.
If you have questions about investment scams or simply want guidance about protecting your finances, we’re here to help.
Email us at [email protected], or call 01273 076 587.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
