What is an investment scam?

An investment scam uses a false or misleading opportunity to take your money, sometimes involving shares, trading or cryptocurrency. A convincing website can show invented returns while a criminal controls the funds. An investment can also lose money without being a scam, so check the firm and its permissions. 12

By Secordit. Last checked: 7 November 2026.

Go to the steps · All glossary terms

How it works

  1. An advert, caller or online contact promotes an investment. 12
  2. A website or trading screen makes the offer look convincing. 12
  3. You pay, but withdrawals are blocked or further payments are demanded. 12

Real UK example

The FCA's August 2025 warning described long-term investment scams built through personal relationships. It also reported follow-up fraud pretending to recover money from crypto wallets. This was reporting about scam methods, not a finding that every unsuccessful investment was fraudulent. 3

Warning signs

  • Pressure to invest before you can check the firm. 12
  • Returns presented as unusually high with little risk. 12
  • A celebrity endorsement that you cannot verify. 12
  • Further payments demanded before you can withdraw. 1245

What to do now

  1. Stop further payments, including supposed withdrawal charges. 1245
  2. Contact your bank or payment provider if you have paid. 1245
  3. Report the suspected investment scam to the FCA as well as the police reporting route below. 12

UK reporting and support

  • If money has gone or banking details were shared, call your bank using the number on your card. Or use 159 if your bank participates. 456
  • Report fraud or hacking in England, Wales or Northern Ireland to Report Fraud. In Scotland, call Police Scotland on 101. 57
  • If someone is in danger, call 999. 7

How to protect yourself

  • Use the FCA’s checking tools and verify the firm’s contact details. 12
  • Check permission for the particular service, not just a familiar company name. 12
  • Do not treat a professional website or on-screen profit as proof. 12

Frequently asked questions

Are all cryptocurrency investments scams?

No. But crypto investments are high risk, and fraudulent platforms exist. The FCA says you should be prepared to lose all money invested in crypto. 2

Does FCA registration protect every crypto investment?

No. The FCA warns that registration does not necessarily give access to compensation or the Financial Ombudsman Service. 2

Why am I being asked to pay more to withdraw?

It can be part of a scam. Stop and check independently rather than paying another charge to the platform. 18

Matching kit

After a Scam: What to Do First · £7 · Digital download.

A printable UK checklist for the money, account and reporting steps. It is general information, not a recovery service.

General information, not legal, financial or personalised security advice. Secordit is not a police or bank reporting service.

News Pulse

Account security, explained by email.

Read about News Pulse

Sources

  1. FCA, Online trading scams | FCA. Accessed 7 November 2026 (Europe/London).
  2. FCA, Crypto investment scams | FCA. Accessed 7 November 2026 (Europe/London).
  3. FCA, Almost 5,000 fake FCA scams reported in first 6 months of 2025 | FCA. Accessed 7 November 2026 (Europe/London).
  4. UK Finance, Authorised Push Payment Fraud Reimbursement | UK Finance. Accessed 7 November 2026 (Europe/London).
  5. Report Fraud, Report Fraud alert: Police forces being impersonated in scam calls using ‘spoofed’ phone numbers - Report Fraud. Accessed 7 November 2026 (Europe/London).
  6. Stop Scams UK, 159 Phone number - Stop Scams UK. Accessed 7 November 2026 (Europe/London).
  7. Police Scotland, How to report a crime - Police Scotland. Accessed 7 November 2026 (Europe/London).
  8. FCA, Recovery room scams | FCA. Accessed 7 November 2026 (Europe/London).