Money Minder UK

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Get-rich-quick schemes

In Brief: Get-rich-quick schemes

Thursday, 30 January 2020

Would you be able to spot a fraudulent investment scam vs a genuine investment? Fraudsters can net millions via their scams. Many have a professional-looking website and documents. It is estimated that in six months fraudsters (across all categories of financial fraud), can total approximately £200 million in stolen profits. So what could you look out for? Here are some red flags that could help to spot a fraudster. Getting a phone call or email from someone claiming to be a stockbroker or portfolio manager, offering low-risk and high returns.

If it is too good to be true it possibly is. Some investment scams may even claim to be regulated by the relevant authorities to mislead you. In the UK, a firm must be authorised and regulated by the Financial Conduct Authority (FCA), to perform most financial services activities. The FCA has a list of four ways you could use to protect yourself from financial fraud for example: reject unexpected offers, check who you are dealing with, don’t be rushed and, seek impartial professional information or advice.

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Please be aware these articles are for general information purposes only and correct at time of printing. We will not accept responsibility for any errors made or actions taken by any readers that have acted on the information contained. Answers given are for guidance only and specific advice should be taken before acting on any of the suggestions made. All information is based on our understanding of current tax practices, which are subject to change. Always remember when investing, past performance is not necessarily a guide to future performance and the value of some investment units can fall as well as rise.