Investment Scams in the UK: Clone Firms, Crypto Trading and 'Guaranteed Returns'
Investment fraud causes some of the biggest individual losses in the UK. Scammers set up 'clone firms' that copy the name, address and FCA reference number of a real authorised company, advertise fake bonds and ISAs with 'guaranteed' high returns, or run crypto and forex 'trading platforms' promoted through social-media ads and deepfake celebrity endorsements. Many victims start by filling in a comparison-site style form, then get a call from a polished 'account manager'. The FCA's rule of thumb is simple: if someone is promising guaranteed high returns, it is almost certainly a scam.
Real Scam Message Examples
These are real examples of messages used in this type of scam. If you receive something similar, do not click any links.
Example 1
“Fixed-rate bond offer: 8.25% guaranteed return, capital protected, FCA regulated (FRN 1234xx). Minimum £10,000. Only 3 places left this month — reply YES to speak to your adviser.”
Example 2
“Hi, it's James from the trading desk. Your £250 starter account has grown to £4,870. To unlock withdrawals you need to upgrade to Gold tier with a £5,000 deposit. Shall I send the bank details?”
Example 3
“Martin Lewis REVEALS the 'passive income' platform UK banks don't want you to know about. Turn £200 into £1,500 a week. Register now before it's shut down!”
Warning Signs of a UK Investment Scam
- ⚠You're promised 'guaranteed' returns, 'no risk', or rates far above what UK banks and NS&I pay
- ⚠The firm quotes a real FCA reference number but wants you to use a different phone number, email or website from the one on the FCA Register
- ⚠An ad features a famous UK personality or TV presenter 'backing' a crypto platform or trading bot
- ⚠You're asked to install AnyDesk or TeamViewer so an 'account manager' can help you trade
- ⚠You're pressured to invest quickly, told the offer is 'limited', or asked to pay fees or 'tax' before you can withdraw
How Does This Scam Work?
- 1You see an ad, get a cold call, or fill in an online form about bonds, ISAs or crypto 'investment opportunities'
- 2A professional-sounding adviser calls, often using a clone of a real FCA-authorised firm's name and reference number
- 3You make a small first investment and see a fake dashboard showing strong gains, which builds trust
- 4You're encouraged to invest more — sometimes to borrow, remortgage or move your pension — and to keep it quiet from your bank
- 5When you try to withdraw, you're asked for 'taxes', 'release fees' or 'insurance'; eventually the firm disappears, and 'recovery' scammers may then contact you
Legitimate vs Scam: How to Tell the Difference
| Aspect | ✓ Legitimate | ✗ Scam |
|---|---|---|
| Returns | Legitimate investments explain risks clearly; returns are never guaranteed (except capped savings products) | Promises 'guaranteed' high returns with 'no risk' |
| Authorisation | Listed on the FCA Register, and you contact them using the details on the Register | Clones a real firm's FRN but gives you different contact details, or isn't registered at all |
| Contact | You approach the firm; FCA rules restrict unsolicited cold calls about most investments | Unexpected cold call, social-media DM, or ad with a celebrity endorsement |
| Withdrawals | You can withdraw your own money without paying extra 'release fees' | Demands fees, 'tax' or a bigger deposit before you can withdraw |
What Should You Do?
- ✓Check the firm on the FCA Register (register.fca.org.uk) and the FCA Warning List, and only contact it using the details shown there
- ✓Use the FCA's ScamSmart tool at fca.org.uk/scamsmart before investing, or call the FCA consumer helpline on 0800 111 6768
- ✓Paste the suspicious message into ScamCheck for an instant verdict
- ✓If you've already paid, contact your bank immediately (dial 159) — UK banks must now reimburse many authorised push payment fraud victims
- ✓Report to Action Fraud at actionfraud.police.uk or 0300 123 2040, and report the unauthorised firm to the FCA
Free Tool
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Check it now — it's free →Frequently Asked Questions
What does an FCA warning about 'guaranteed returns' mean?
The FCA repeatedly warns that promises of guaranteed high returns are a hallmark of scams. All real investments carry risk. If an FCA Warning List entry names a firm, it means the FCA believes it is operating without authorisation or is a clone of a genuine firm — do not deal with it.
What is a clone firm scam?
A clone firm uses the name, address and FCA reference number of a genuine authorised firm to appear legitimate, but gives you its own phone number, email or website. Always look the firm up on the FCA Register yourself and use only the contact details listed there.
How do I check if an investment company is FCA registered?
Search the FCA Financial Services Register at register.fca.org.uk and the FCA Warning List. The ScamSmart tool at fca.org.uk/scamsmart also walks you through checking an investment offer.
Can I get my money back from an investment scam in the UK?
Contact your bank straight away. Since October 2024, UK payment providers must reimburse most victims of authorised push payment (APP) fraud made by Faster Payments, up to a limit, unless there was gross negligence. Report to Action Fraud as well. Be wary of anyone offering to 'recover' your money for a fee — that's often a second scam.
Are celebrity-backed crypto ads real?
No. Ads showing Martin Lewis, other presenters or business figures endorsing crypto trading platforms are fake and often use deepfake video. Martin Lewis has repeatedly said he does not do adverts.
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