Is that ISA or bond you’re investing in real? Or is it a scam?
One of the most common types of investment scam is where the fraudster pretends to represent a reputable company, offering a great investment opportunity. In this particularly upsetting case, the fraudsters pretended to be Credit Suisse; but with the help of a journalist the customer managed to get their money back.
When making your investments, how can you avoid being scammed?
How these scammers operate
You will likely find them through a search for bonds or ISAs on popular search websites. They’ll often be advertising as a type of broker, typically comparing different bonds/investments across organisations. They may also contact you out of the blue via phone, email or through social media.
They’ll then present you with a number of different options, and the returns generally sound quite realistic, which makes it seem more legitimate. Once they’ve recommended a product with a brand you know and trust, they’ll send you a prospectus for that investment which looks very convincing. Often the fraudsters will just be copying a real bond product, and will be sending you a real prospectus!
After you’ve confirmed which product you want, the fraudster will require payment. When you go to make the payment you’ll notice that the name of the account you’re sending funds to isn’t the same as the business providing the bond or ISA. The fraudster will have to try and trick you again by giving you excuses as to why the name on the payee account and the investment company don’t match. This is always a dead give away – if the name isn’t a match for the provider, be very suspicious!
Once the scammer receives the funds, they’ll send it out via multiple accounts or transfer it offshore as quickly as possible, making it difficult for you to ever recover your money.
How do I avoid falling victim to this type of investment scam?
Remember that scammers often pretend to represent a legitimate firm. To stay safe, keep the following in mind:
Be suspicious of anyone that has approached you with an investment
Dodgy websites are a primary source of fake investments
If they’re making excuses as to why the name on the account you’re paying into is different to the company that’s giving you the bond or ISA, stop what you’re doing and phone the provider of the product on their public number listed on the FCA Register
A real investment firm will never ask you to make up reasons for sending money should your bank call you. If they ask you to do this, hang up!
Check the FCA Investment Scam Checker before sending any funds
Check the FCA Warning List to see if the firm has been impersonated before
Speak to a financial adviser – they might save you your whole investment
I think I’ve lost money to a fake investment bond/ISA. Can Refundee help?
Refundee is an FCA-regulated claims management company (CMC), but you don’t need to use us or any other CMC to try to get your money back. You can do this yourself by following our guide.
If you’d like Refundee to manage your case for you from start to finish, we’d be happy to do this for you; we charge a simple, low fee of 15% (plus VAT) of any money that we get back. This is subject to a cap of £10,000 (plus VAT) for each case. Even if it’s been a long time since you were scammed, we might still be able to help get you a refund. Contact us here for a free, no-obligation consultation.
