Armchair Detectives Save Themselves From Investment Scams

Last week, the Financial Conduct Authority (FCA) reported that 25% of people who avoided an investment scam, are being armchair detectives to stop rogue traders in their tracks. They reported that savvy investors saved £2m in 2022 by spotting the warning signs. With calls to the FCA increasing 193% in the last five years, which we covered in last week’s blog.

Armchair detective investors say finding mistakes in material while doing their due diligence was one of the most common signs. Along with requesting personal details to secure the offer. Other classic warning signs that made investors ears prick up; was scammers contacting them out of the blue and pressuring them to hand over money within a short space of time.

The FCA revealed that‘Two in five (39%) respondents claim that their investigative or research skills are helping them to spot the clues. A further 32% are relying on pure gut instinct to distinguish between genuine investment opportunities and potential scams.

Warning Signs

We talk a lot about common scam warning signs here at UK Investment Scams. But, there are some other less talked about warning signs which may include:

  • Exclusivity or Secrecy. They might claim that you have been specially chosen for an investment opportunity so to keep it to yourself.
  • Social proof: They may share fake reviews and claim other clients have invested or want to take up the deal.
  • False authority: Using convincing literature and websites, claiming to be regulated, speaking with authority on investment products.
  • Flattery: Building a friendship to lure people into a false sense of security.
  • Remote access. Scammers may pretend to help and ask people to download software so they can access to your device. This could enable them to access your bank account or make payments using your card.

It’s great that investors are being forensic with their due diligence and thinking twice before handing over their money.  However, it is worth noting that there is only so much you have access to as an individual investor. If you want a bit more clarity and peace of mind before making an investment- take a look at our due diligence services here, and call us now on 020 7504 1300.

Scam Alert

This message serves as a warning against potential online scams, including website scams and investment scams. Please exercise caution and conduct thorough research before engaging in any online transactions or investments. Protect your personal and financial information from fraudulent activities, and consult with trusted sources for advice.

Insolvency and Law Peter Murray is an award-winning consultancy firm specialising in Insolvency, debt purchasing and business rescue.

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