Scams have come a very long way since the days of Nigerian princes promising to transfer you thousands of pounds if only you give them your bank details! Nowadays it can be much more difficult to distinguish a sophisticated scam from a real investment opportunity

You may have seen adverts on social media and search engines promising high returns on investments, suh as: ‘Double your money in 24 hours’ and ‘Get rich with crypto now!’

They might encourage you to invest in gold, property, crypto, and even wine or whisky, with the promise of fast, and potentially life-changing returns. These ads are usually accompanied by reviews from other investors, with testimonials about all the money they’ve made

It can be hard to spot fake websites, adverts, reviews, emails, and text messages when they look and sound like legitimate investment. So here’s how to spot a scam

Signs of a potential investment scam

🚩 Social media adverts offering suspiciously fast and high returns on investments with little to no risk, even if they look like they’re endorsed by a well-known celebrity, influencer, or government agency

🚩 Being contacted out of the blue via phone, email, or social media about a potential investment opportunity

🚩  Pressure to make a decision quickly about an investment with no time to consider your options

🚩 You’re told to download screen sharing or remote access tools to ‘support you’ through the investment process. A legitimate financial institution would never ask you to do this

How to avoid an investment scam

✅ Take the Financial Conduct Authority’s ScamSmart test to check if any investment opportunity you’ve been offered could potentially be a scam

🔎 Search the company name online and call an independently sourced telephone number. Look for any negative reviews or comments from other consumers concerning scams

📞 Reject cold calls. Cold calling to sell you investments is illegal. If you’re called or messaged about an investment opportunity, the safest thing to do is hang up and ignore any automated voicemail messages

👥 Be extra cautious. It’s worth talking with a trusted family member or friend and showing them the investment opportunity, to help sense-check it’s legitimacy. If you’re unsure if the investment is suitable for your individual circumstances, seek professional advice from an authorised independent financial adviser before investing

Take Five to stop fraud

Take Five is a national campaign to improve online fraud awareness. It advocates a three-step process to stop fraudsters in their tracks:

STOP. Take a moment to stop and think before parting with your money or information could keep you safe

CHALLENGE. Remember, it’s okay to reject, refuse, or ignore any requests. Only criminals will try to rush or panic you

PROTECT. Contact your bank immediately if you think you’ve fallen for a scam, and report it to Action Fraud

NMTBP hopes that these tips help you spot ads and scams that really are too good to be true

Stay safe out there!