Find out how online trading scams work, how to avoid scams and what to do if you're scammed.
People are being increasingly targeted by investment scams carried out via online trading platforms where fraudsters offer trades in foreign exchange, contracts for difference and cryptoassets such as bitcoin.
How online trading scams work
Investment scams using online trading platforms are often promoted online and via social media channels. They often use fake celebrity endorsements and images of luxury items to entice people to invest in their scams.
The ads then link to professional-looking websites where consumers are persuaded to invest, either through a managed account where the firm makes trades on their behalf, or by trading themselves using the firm’s platform.
Most people report initially receiving some returns from the firm to give the impression that their trading has been a success. They will then be encouraged to invest more money or introduce a friend or family member. Eventually the returns stop, the customer’s account is suspended and there’s no further contact with the firm.
Scammers also target people searching for investments online through search engines like Google and Bing. They may offer high returns to tempt you into investing, but some may also offer more realistic offers to appear more legitimate.
If you are offered an investment opportunity through a search engine, they may not be regulated or authorised by us. You can check the FCA Warning List[1] for firms to avoid.
How to protect yourself
Many scam firms claim to be based in the UK and even claim to be FCA-authorised.
You should only deal with financial services firms that are authorised by us. Use the FCA Firm Checker[3] to find out if a firm is authorised and has permission for the service it's offering you. If you can't find a firm on the Firm Checker, contact us[4] on 0800 111 6768.
Always be wary if you’re contacted out of the blue, pressured to invest quickly or promised returns that sound too good to be true.
If you're contacted unexpectedly by a financial business, make sure you only reply using the contact details on the Firm Checker[3].
Find out more about how to protect yourself from scams[5].
If you've been scammed
If you’re worried about a potential scam, or you think you may have been contacted by a fraudster, report it to us. Call us on 0800 111 6768 or use our contact form[8].
If you’ve already invested in a scam, fraudsters may try and target you again or sell your details to other criminals.
The follow-up scam may be completely separate or related to the previous fraud, such as an offer to get your money back or to buy back the investment after you pay a fee.
