How do online trading platform scams work?
Investment fraud involves the illegal sale or purported sale of financial instruments. The typical investment fraud schemes are characterized by offers of low- or no-risk investments, guaranteed returns, overly-consistent returns, complex strategies, or unregistered securities. Investment fraud comes in many forms. Whether you are a first-time investor or have been investing for many years, here are some basic facts you should know about different types of fraud.
How to protect yourself?
- Be wary of adverts online and on social media promising high returns from investing online.
- Always be wary if you are contacted out of the blue, pressured to invest quickly or promised returns that sound too good to be true.
- Always do your own further research on the product you are considering and the firm you are considering investing with.
- Seriously consider getting independent financial advice or guidance before investing. You should make sure that any firm you deal with is regulated by us and never take investment advice from the company that contacted you, as this may be part of the scam.
- Don’t give access to your device by downloading software or an app from a source you don’t trust. Scammers may be able to view, take control of your device and access your bank account.
If you’re suspicious, report it
You can report the firm or scam to us by contacting us.
If you’ve given your bank account details to a firm you think may be operating a scam, tell your bank immediately.