Investment scam: how to spot one and what to do if you've paid

How the scam works

Investment scams are rarely a one-off payment. The scammer wants everything they can get, and the pattern is usually the same:

1. The bait. A paid advert or "news story" with a well-known face, an unexpected call, email or text, or a stranger on social media, a messaging app or a dating site who slowly becomes a "friend". The offer might be crypto, shares in famous companies, forex, gold or a "guaranteed" fund.
2. A small first deposit. Low enough that it doesn't feel risky.
3. Growing profits. The platform shows your money rising. Those numbers are made up. Sometimes you're allowed to withdraw a small amount so you believe it all works.
4. The "adviser" helps out. They suggest investing more, moving money elsewhere, or offer to "help you trade" through a remote access app such as AnyDesk or TeamViewer – which gives them access to your computer and possibly your bank.
5. You can't withdraw. When you ask for your money back, there's suddenly a "fee", a "tax" or an "account activation" charge to pay first.

Warning signs

The UK's Financial Conduct Authority (FCA) and the US Federal Trade Commission (FTC) list the same red flags. Any one of them is reason to stop:

• Guaranteed or unusually high returns. All investments carry risk. "Low risk, high returns" and "guaranteed profit" are scammers' words.
• Contact out of the blue – a call, email, text or social media message you didn't ask for.
• Pressure to act fast – a bonus for investing today, or an offer that's "only open for a short time". The FTC notes that scammers may also discourage you from doing your own research.
• Secrecy and flattery. You've been "specially chosen" and should keep it to yourself; the person goes out of their way to become your friend.
• A secret method or proven system, with few details and no proper documentation.
• A famous face in an advert is not proof. Ads and fake news articles use celebrities' names and images without permission, and video can be convincingly faked with AI.
• They want remote access to your device. No genuine adviser needs to control your computer or see your online banking.
• You have to pay to get your own money out. A fee, tax or "unlock" charge before a withdrawal is a clear sign of fraud.

How to check before you pay

1. Check that the firm is authorised. In the UK, most financial firms must be authorised or registered – search the FCA's Firm Checker (linked from the FCA's ScamSmart guide) and also look at the FCA Warning List of firms operating without authorisation. In the US, use the free search tool on Investor.gov to see whether a person or firm is licensed or registered; for precious metals and commodities, the FTC points to the CFTC.
2. Watch out for clone firms. Scammers pretend to be real, authorised companies and copy their name and registration number. The FCA advises using only the contact details shown on its register, never those the firm gave you, and typing the register's address yourself rather than clicking a link. If the details are missing or the firm claims they're out of date, call the FCA on 0800 111 6768.
3. Search for the company name with words like "review", "scam" or "complaint", as the FTC suggests – and don't rely on testimonials or newsletters.
4. Take your time and talk to someone you trust. A real opportunity will still be there tomorrow.

Already paid? What to do now

1. Don't send any more money. Not even the "last fee" that's supposed to unlock your withdrawal. It won't get your money back.
2. Contact whoever handled the payment, straight away, using the number on your card or the official app or website:
   • card or bank transfer: your bank or card issuer – report the fraud and ask them to stop or reverse the payment and refund you,
   • wire transfer: the transfer company,
   • crypto: the exchange or crypto ATM operator – tell them the transaction was fraudulent and ask them to reverse it. The FTC warns that crypto payments don't have the same legal protections as card payments.
3. Did you install a remote access app on the "adviser's" instructions? Remove it, update your security software and run a scan. Change your passwords – banking, email, the trading account – and turn on two-step verification. If you're not sure the device is clean, ask the manufacturer or a trusted repair service for help.
4. Report it.
   • UK: call Report Fraud on 0300 123 2040 or go to reportfraud.police.uk. You can also tell the FCA on 0800 111 6768 – it may help stop others being caught.
   • US: report to the FTC at ReportFraud.ftc.gov and to the SEC at sec.gov/tcr; for crypto scams, the FBI asks victims to file a complaint with IC3 without waiting.
   • Elsewhere: contact your local police and your country's financial regulator.
5. Gather the evidence. The FBI says the most important details are the crypto wallet addresses, the amount and type of cryptocurrency, the date and time, and the transaction ID (hash). Add how you met the scammer, their names, phone numbers and emails, the websites or apps they told you to use, the exchanges involved and a timeline. Report even if you don't have everything.
6. Stop all contact with the scammer. Don't respond to threats or to promises that you can "still save" your investment.

Did you also enter your card details or upload ID documents to the platform? Lock down your accounts with our guide Account hacked: how to get it back and watch your statements closely.

Protect yourself in advance

• Only invest through firms you've found and checked yourself on the official register – never through an advert or a tip from a chat.
• Agree a rule with your family: "Anyone offering quick riches is a scammer. Call me before you send anything."
• Never give anyone remote access to your computer, phone or online banking.
• Got a link in an advert or message? Check it without opening it using our link checker.