Investment Scams: How to Spot Them and Get Your Money Back
In 2025, £221.5 million was lost to investment fraud and scams, representing 38% of all APP scam losses. Only 48% of the funds were refunded to victims. At Refundee, we believe this is wrong, and we support victims in exercising their legal right to reimbursement.
If you were deceived into thinking an investment was legitimate and you lost your money, then you may have rights to reimbursement under APP fraud rules.
In this article, we will discuss what investment scams are, how to spot them and critically, what victims can do to get their money back.
What are Investment Scams?
Investment fraud is one of the most prevalent and financially damaging scam types in the UK, and understanding how it works is the first step to protecting yourself.
Investment scams typically begin with an advert or unsolicited message promoting an opportunity with unrealistic but enticing returns. These can come from entirely fictitious firms or from fraudsters impersonating legitimate, registered organisations.
Once you register interest, a supposed financial advisor or broker may contact you to walk you through the opportunity. From here, the operation is designed to look convincing. Scammers present professional dashboards showing your trades performing well, speak with apparent expertise, and reference years of experience generating returns for clients.
As confidence builds, victims are encouraged to deposit more funds to capitalise on their gains. The real moment of realisation comes when withdrawal is attempted. At that point, fraudsters either demand fees to release funds or manufacture reasons why the money cannot be accessed.
By then, for most victims, the money is already gone.
Investment Scam Warning Signs
It is important to look at the common warning signs so you can protect yourself from becoming a victim of investment fraud.
Common warning signs:
You come across the person or company on a social media advert
66% of APP scams start online and as we explored in our Social Media Ads article, fraudsters can now create professional-looking ads that are genuinely difficult to distinguish from legitimate advertising.
You receive a phone call, email or WhatsApp message out of the blue
Fraudsters may contact you out of the blue presenting an investment opportunity.
You were encouraged to start small to ‘test’ the investment
Often with these scams you’ll be asked to put in as little as £200 or £250 to see how it performs. You will then see your investment perform remarkably well which will be used to encourage you to invest more.
Unrealistic and guaranteed returns
Fraudsters commonly offer high guaranteed returns, which are backed by contracts or funding, so it seems there is ‘nothing to lose’. A good approach is to take a step back and consider, if what this person is telling you is true, why they would be telling you.
You receive returns initially
You may think, "If I am receiving returns, it must be legitimate, however this is a common tactic used by fraudsters to persuade you into investing more.
Unregulated firms
Companies offering investments need to be regulated by the FCA to provide investment advice. If they are not regulated, then it is a major red flag.
Claims of official contracts with the Government or local authorities
As Refundee has recently observed in social sousing scams, fraudsters will claim that they have contracts backed by the government or legitimate authorities to gain trust and security with the investment offering.
Pressure to invest further
You may see fraudsters pressuring you to invest more to capitalise on the opportunity for returns and even pressuring you to take out loans or borrow from family and friends.
Requests for withdrawal fees
When you want to withdraw your funds, fraudsters will request fees for you to access your money. It is important you do not send any further fees as they will not release the funds.
Common examples of investment scams
There are some common types of investment scams that scammers target the UK public with:
Cryptocurrency scams
These scams are where a ‘broker’ persuades you to invest into cryptocurrencies. You will be asked to convert the money into crypto before sending, or to use a non mainstream bank such as Revolut to send the funds.
Property and social housing investment scams
Social housing scams have become more prevalent than ever recently and scammers can show legitimate looking contracts with the Government or local authorities, however it is later found that the investment was highly exaggerated or never present at all.
Pension, bond and ISA scams
Scammers promote fake pension transfers, high-yield bonds, or fraudulent ISA opportunities that promise guaranteed returns and tax advantages. Victims are pressured into moving savings into unregulated or non-existent investments, often resulting in significant financial losses.
Forex and binary options scams
These scams lure victims with promises of easy profits from currency trading or binary options platforms. Fraudsters may manipulate trading results, block withdrawals, or operate entirely fake platforms designed to steal deposits.
Gold, precious metals and coin scams
Fraudsters sell overpriced, non-existent, or low-value gold, silver, rare coins, and other precious metals while claiming they are safe, high-growth investments. Victims often discover the assets are worth far less than promised or were never purchased at all.
Alternative assets: whiskey, wine and diamonds
Scammers market collectible assets such as rare whiskey, fine wine, or diamonds as exclusive investment opportunities with exceptional returns. The products may be grossly overvalued, difficult to sell, or completely fictitious.
Business investment scams
Criminals encourage people to invest in fake startups, property developments, or business ventures using fabricated financial projections and success stories. Investors are persuaded to part with money for projects that either do not exist or have no realistic chance of delivering returns.
AI, Instagram and WhatsApp investment scams
Scammers use social media, messaging apps, and AI-generated content to promote fake investment schemes and trading opportunities. They often impersonate experts, create convincing testimonials, and pressure victims into depositing funds that cannot be recovered.
How to Protect Yourself From Investment Scams
Whilst it is important to spot common red flags of investment scams, it is also vitally important to know how to protect yourself from becoming a victim of investment fraud.
To protect yourself, you should:
Check the FCA register
You can see if the firm you’re dealing with is registered. Just remember that some fraudsters can pose as registered firms, so you should still carry out additional checks.
Check the FCA warning list
Visit the FCA website which provides a warning list of scam companies, along with legitimate registered companies that fraudsters are known to be impersonating. While you may find information here that helps you, be aware that there could be companies and scams out there that haven’t yet been reported.
Search the company name online
You can search for the company online and include the word ‘scam’ or ‘fraud’ afterwards and see what comes up
Search for reviews online
You can search for verified reviews on Google or platforms such as TrustPilot. It is important to remember that fraudsters can regularly fake reviews so you should still carry out further checks.
Question the returns
You should always take a moment to think about the returns that are being offered and take a step back to think if these are too good to be true. If you think it may be too good to be true, then it's usually because it is.
Speak to someone
It is easy to be tricked by fraudsters into believing what you are investing in is real, however it is always good to speak to someone you know to discuss this and get a second opinion.
Can I Get My Money Back After an Investment Scam?
Becoming the victim of an investment scam can have a devastating impact, however there are certain protections in the UK that mean you may be able to recover your funds.
If you sent the funds from a UK bank account, you may be protected. New reimbursement rules for APP fraud in the UK have significantly improved victims’ chances of recovering lost funds.
Many victims are not aware that they now have a legal right for reimbursement under new APP fraud reimbursement rules introduced in October 2024.
Key parts of the Mandatory Reimbursement rules:
You made the payment after the 7th of October 2024
Your payment was sent to another UK bank account
Maximum refund of £85,000 per claim
Banks can deduct an excess of £100 (doesn’t apply to vulnerable customers)
Victims must report the scam within 13 months of the payment
Banks cannot delay the claim indefinitely
If you sent your funds before October 2024 then you may still have protections depending on what bank you used to send the payment.
If your bank is signed up to the Contingent Reimbursement Model (CRM) Code and you meet the criteria below, you might be able to claim your money back:
You made the payment from your UK bank account after the 28th of May 2019
Your payment was sent to another UK bank account
Check our list of participating banks to see if yours is signed up to the CRM code.
If your bank rejects your claim, this does not mean you are out of options. Banks in the UK regularly deny victims reimbursement for unfair reasons and there are further steps you can take to recover your invested funds.
You can take your case to the Financial Ombudsman free of charge, however you must do this within 6 years of when you made the payment and 6 months from receiving a final response letter from the bank.
How Refundee can help:
You can also use an FCA regulated claims management company like Refundee to help you recover your money.
We are specialists in investment fraud recovery and UK banking regulations, and we have recovered over £130 million for clients to date.
We work on a no win, no fee basis so you only pay a fee if you are successful.
Read about the fees we charge.
Start your free eligibility assessment here — or read verified reviews from our clients on Trustpilot.
Frequently asked questions:
What are the most common investment scams?
The most common investment scams include cryptocurrency scams, property and social housing investment scams, and forex and binary options scams. Fraudsters typically promise high returns with little or no risk, using pressure tactics to encourage victims to invest quickly before carrying out the fraud.
How do I check if an investment is legitimate?
Research the company thoroughly, verify that it is authorised by the FCA, and review independent information about its products and services. Be cautious of unsolicited investment offers and always seek professional financial advice before sending funds.
What are the warning signs of an investment scam?
Common warning signs include promises of guaranteed or unusually high returns, pressure to act quickly, unsolicited contact via phone, email or social media, and requests to keep the opportunity confidential. A lack of clear documentation or regulatory approval should also raise concerns.
Can I get my money back after an investment scam?
If you sent the funds from a UK bank account, you may be protected. Under reimbursement rules for APP fraud in the UK victims have rights to recover their funds through UK banking regulations.
Conclusion
Investment fraud is at record levels and it is more important than ever to learn how to protect yourself.
Behind every figure is a real person dealing with the financial and psychological impact of fraud.
Being scammed is not a reflection of intelligence or weakness. Fraudsters are professional criminals who use sophisticated psychological tactics to manipulate victims.
If you have been the victim of an investment scam you are not alone and you have options to help you recover from this.
Refundee can provide you with the support and clear guidance you need to recover from investment fraud.
