This is when a criminal persuades you to make an investment for something that’s worthless or doesn’t exist. Here’s a list of the different types of investment scams:
Binary: This is a form of fixed-odds betting where criminals offer high returns.
Advance Fee Fraud: This scam involves being told you have won a lottery you didn’t enter or you’re due an unexpected inheritance. They’ll usually ask for a fee upfront for administration costs. Genuine lotteries won’t ask for a fee to release your winnings.
Cryptocurrency: This is a digital currency that uses cryptography to generate ‘tokens’ and verify the transfer of these tokens between people. Criminals try to lure you in with adverts offering quick, easy money. This is because they want your money or personal info.
Before you make any investments, you should:
- Visit the FCA ScamSmart site.
- Check the company on the FCA Register.
- Check the FCA list of unauthorised businesses.
- Be cautious of anyone approaching you with exclusive investment opportunities. If you’re being pressurised to act quickly, this could be a scam.
- Avoid relying on personal testimonials or celebrity endorsements as they could be fake.
To learn about more scams, take a look at The Little Book of Big Scams.
