Investment scams How to prevent investment scams
Don't reply to investment scammers
Do not reply to high-risk investment scammers
Ignore and destroy all letters, emails or phone calls offering high profit, low-risk investment opportunities. If you're unsure if a proposition is an investment scam, contact Consumer Direct.
Do not reply to high-risk investment scammers – even to ask they stop contacting you – as you'll confirm your identity and may end up being sent more scam mail.
If you've given investment scammers personal information, such as your date of birth, bank details, and address, you may be at risk of identity theft. Read our guide to beating identity theft for tips on what to do next.
Reduce junk mail and calls
Reduce the number of unsolicited mailings and phone calls you receive by registering with the Mail Preference Service (0845 703 4599) and Telephone Preference Service (0845 0700 707).
You can also cut the amount of unsolicited mail you receive by ticking the box that prevents your details being given to marketing companies when filling out your electoral roll application.
Watch out for multiple investment scams
If you've been the victim of an an investment scam once, you're likely to be targeted again. If an investment scammer receives money from you, they may well hold onto your information for future use, or sell your details to other scam artists.
The second investment scam may be linked to the first scam – for example you may be approached by someone who wants to buy the worthless shares you bought and lost money on initially, or you may be told that you need to pay and administration fee or transfer fee in order to exchange your worthless assets for better-performing ones.
Invest wisely
Always take independent professional advice before making any investment, and particularly if the type of investment is unfamiliar to you.
The Financial Services Authority (FSA) regulates the marketing of shares. The FSA have published a list of unauthorised firms selling shares who target UK investors on its website.
The FSA also provide a Firm and Person Check Service to enable investors to find out whether a company or individual is an authorised trader.
If you're looking for a new way to invest your money, our alternative investment options guide can help you choose.
