šŸ›”ļø How to Avoid Being a Victim of Investment Fraud:

Uncategorized 3 Minutes

By Steve Conley, Academy of Life Planning

In 2024, according to UK Financeā€™s annual fraud report, investment fraud losses in the UK soared to Ā£649 millionā€”a stark reminder that no one is immune, and that fraud is evolving faster than most protections can keep up.

Whatā€™s most alarming?

  • Fewer scams, higher losses. Case numbers are down, but scammers are targeting wealthier individuals with far greater financial impact.
  • Cryptocurrency dominates. 66% of reported scams involved cryptoā€”often promoted via social media platforms like WhatsApp, Facebook, and Instagram.
  • Authorised Push Payment (APP) fraud is now the most common method, where victims are tricked into sending money directly to fraudsters.

As financial advisers and individuals, we must get ahead of this threat. Here’s how:

āœ… 10 Rules to Stay Safe from Investment Scams

  1. Never Act on Unsolicited Offers
    If someone contacts you out of the blue about an “amazing” investmentā€”walk away. Whether itā€™s a cold call, email, or social DM, it’s almost always a scam.
  2. Verify FCA Registration
    Always check the Financial Conduct Authority register (https://register.fca.org.uk) to ensure a firm or individual is authorised. Scammers often impersonate real companies, so confirm contact details independently.
  3. Avoid Social Media ‘Advisers’
    WhatsApp is the most common scam channel in 2024, followed by Facebook and Instagram. No legitimate adviser will provide financial advice via social media.
  4. Pause Before You Pay
    APP fraud relies on urgency. If you’re pressured to transfer money quickly, itā€™s a red flag. Never send funds without a cooling-off period and a second opinion.
  5. Use a Second Channel for Verification
    Always confirm investment instructions using an alternative methodā€”like a phone callā€”before acting. Email can be hacked, spoofed, or manipulated.
  6. Guard Your Data Like Cash
    Fraudsters may steal personal data and wait for the perfect moment to strike. Monitor your digital footprint, and change passwords regularlyā€”especially for email and financial accounts.
  7. Scrutinise Crypto Offers
    Crypto scams now dominate the fraud landscape. While crypto can be legitimate, most opportunities promoted directly to individuals are not. If it promises fast returns, itā€™s likely a trap.
  8. Report Suspicions Immediately
    If something seems off, notify the FCA and Action Fraud. Early reporting can prevent losses for you and others.
  9. Expect Delays in Detection
    Sophisticated scams can take months or even years to unravel. Just because a fraud hasnā€™t been detected doesnā€™t mean it hasnā€™t happened. Stay vigilant.
  10. Educate Yourself and Others
    The best defence is awareness. Whether you’re an adviser or an individual investor, continuous learning is key. Share resources, attend webinars, and keep fraud top of mind.

šŸ“ˆ The Shifting Scam Landscape

According to UK Finance, 2024 saw:

  • A 34% increase in investment scam losses (to Ā£144.4 million).
  • The average victim was wealthierā€”with those aged 55ā€“64 losing the most.
  • 53% of scams originated online, and 23% via telecoms.
  • The reimbursement rate for APP investment scams was just 50%.

This data shows that the game has changed. The fraudsters are more targeted, more patient, and more technologically advanced.

šŸšØ Final Thought

As Detective Superintendent Oliver Little rightly said:

ā€œIf it were that easy to make profit on an investment, we would all know about it.ā€

There are no shortcuts to wealth. If you’re ever in doubtā€”pause, research, and ask for help. At the Academy of Life Planning, we empower individuals to build wealth with wisdom, not risk.

šŸ“¢ Want an expert, independent analysis to help you understand an investment better?
Join our community of independent planners and protect your financial future: www.aolp.info

šŸ” Or report suspected fraud: http://www.actionfraud.police.uk

Steve Conley
Founder, Academy of Life Planning
Leader, Get SAFE Initiative
Advocate for Financial Justice | Peer Mentor | Former Industry Insider

About Get SAFE

Get SAFE (Support After Financial Exploitation) was born from a simple truth: too many victims of financial abuse are left to suffer in silence.

We exist in memory of Ian Davisā€”for the ones who did everything right, only to be failed by the systems they trusted. We know that behind every vanished pension, every ignored complaint, and every stonewalled letter is a personā€”frightened, exhausted, and too often alone.

Get SAFE offers more than sympathy. We offer structure, support, and solidarity.
We provide a voice where thereā€™s been silence, and clarity where thereā€™s been confusion.
We stand beside those who have been exploited, not just to help them recoverā€”but to help them reclaim their story and rebuild their future.

Because financial justice is not a luxury.
Itā€™s a human right.

If you or someone you know has been affected by financial exploitation, we are here.
You are not alone.

 Learn more at: Get SAFE (Support After Financial Exploitation).

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