Our Financial Litigation team takes a look at everything you need to know about Investment scams – including how these scams work, warning signs to look out for, and the legal options that may be available.
What Is An Investment Scam?
An investment scam happens when someone contacts you unexpectedly – this could be via phone, email, social media, or in person – offering a ‘once-in-a-lifetime’ investment opportunity. This can include stocks, crypto, or other financial products, that are either fake or misrepresented.
Scammers often pretend to be legitimate professionals, such as stockbrokers, portfolio managers, or financial advisers, and use professional-looking websites, documents, or apps to appear credible. They may even use deepfake videos or AI-generated content to impersonate celebrities and build trust.
Early payouts may be offered to convince victims to invest more, but eventually the scammer disappears with the money, leaving no real investment behind.
What are the common signs of an investment scam?
You may be dealing with an investment scam if:
- You receive unsolicited contact regarding investment opportunities.
- There are promises of unusually high returns with minimal risk.
- You are pressured to act quickly or in secrecy regarding the investment.
- You are offered commission to promote the scheme or investment to family or friends.
- The is a lack of proper licencing or registration with the financial authorities.
How do Investment Scams often happen?
Investment scammers contact individuals out of the blue offering ‘too good to be true’ investment opportunities. They often say that the investment is low risk, with guaranteed high returns which seem very appealing and ‘too good to miss’.
Scammers create very convincing websites, apps, dashboards, customer portals, logos and other online content to make their operation look like a legitimate company. This can include professional branding, realistic testimonials and polished marketing materials.
The financial loss occurs when the scammer convinces you to transfer your money. You believe that you are transferring the money to a reputable company or person, for genuine reasons, however you have transferred the money to the scammer.
What should I do if I have fallen victim to a scam?
- Stop all contact Cease any communication with the scammer. Do not send any more money or personal information. Scammers often manipulate victims into sending more funds under false pretences.
- Do not engage with any company who contact you out of the blue – If they claim that they may be able to assist on recovering the funds if you pay them a fee in advance, they are usually part of the scam. Once you have sent the money, you won’t hear from them anymore.
- Document everything – Gather and save all evidence related to the scam. This includes downloading all conversions and taking screenshots of messages, emails, contact information and any financial transactions. Keep as many details as possible such as dates, times and details of your interactions with the scammer.
- Report the crime to the police – Contact your bank or credit card and report the profile to the app or online platform.
- Consider seeking legal advice – Specialist solicitors experienced in bank scam and cryptocurrency scam claims may be able to review your case, advise you on your options, and make a complaint on your behalf.
How might Oakwood Solicitors be able to help?
Investigation
If you have been a victim of an Investment scam, we can see if our team can help you get your money back. Our Financial Litigation experts will review the evidence to see if it is possible to make a complaint to the bank for a refund of the monies lost.
Recovery Options
There are options available to recover your money. It can be sought from the financial institution that should have prevented the fraud. In some instances, there may also be other regulated firms involved who also could have detected the fraud and issued a warning.
You can attempt to recover the funds yourself without legal representation. However, there are benefits to having instructed us to do this for you.
We are a regulated firm of Solicitors with over 20 years’ experience in financial mis-selling claims. We aim to take the hassle out of the claims process, as we do all the hard work for you.
What additional support is available regarding scams?
If you believe you have been victim to an Investment scam, whether you transferred money to the scammer or not, then there is further advice and support available from the following services:
- Citizens Advice – Information and guidance is available here.
- Action Fraud – They can log the details of what happened by calling 0300 123 2040.
- Financial Conduct Authority (FCA) – If the scam involves cryptocurrency, investments, insurance or pensions.
- National Cyber Security Centre – Send suspicious emails to report@phising.gov.uk for investigation.
- 7726 – Send suspicious text messages to this number to report the message to the network provider. This is a free text messaging service.
- Advertising Standards Authority – Report fake or misleading advertisements
Client Case Study – ISA scam
Our Client was encouraged to send £65,000 to what he believed to be a genuine investment opportunity via his ISA manager.
Despite a small amount received back, our client lost almost the entire amount invested as it turned out the investment was a scam. Our client made a complaint to his bank who rejected the complaint.
As our client used an FCA regulated ISA Manager, he was able to bring his claim to the Financial Services Compensation Scheme (FSCS) who deemed that the ISA Manager could have done more to avoid this loss, and awarded the difference in compensation.
Frequently Asked Questions
- How can I recover the money lost to a scam?
You can make a complaint to the bank where the payments were made from.
- Would the bank refund me?
The bank will review complaints on a case-by-case basis so they can assess all factors, and assess whether it should have done more to protect you and your money.
- Are there any upfront fees for you to make a claim on my behalf?
There are no upfront fees, and we would never ask for any upfront costs to make a claim on your behalf.
- Am I liable to pay any fees if the claim is unsuccessful?
No. Subject to compliance with the agreement between us, you would not be liable to pay any legal fees unless your claim was successful.
- How much will I pay if I win my case?
Oakwood Solicitors is authorised and regulated by the SRA. The SRA introduced fixed fees for this area of work.
We receive payment as a deduction of any payments you receive. This means that the payment is a fixed percentage of the refund amount. The exact percentage is fixed as per the table below:
| Band |
Redress awarded for a claim (3) |
The maximum percentage rate of charge |
The maximum total charge (£) |
| 1 |
1-1,499 |
30% |
420 |
| 2 |
1,500 – 9,999 |
28% |
2,500 |
| 3 |
10,000 – 24,999 |
25% |
5,000 |
| 4 |
25,000 – 49,999 |
20% |
7,500 |
| 5 |
50,000 or above |
15% |
10,000 |
This depends on how the bank pays any refund. If it makes payment to our client account, we will deduct our percentage fee from the money and the balance will be sent to you.
Alternatively – if the bank refunds the payment to your account, we will raise an invoice for payment of our percentage and you will be required to pay this invoice.
Why should I choose Oakwood Solicitors to represent me in my financial scam claim?
- We are a regulated Firm of Solicitors with over 20 years’ experience of recovering money for clients.
- We take all the hassle and stress out of the claim.
- We do not charge any upfront fees. Our fees are a fixed deduction of any money you recover.
- Our fee is only payable if your claim is successful.
WHAT TO DO NEXT
If you would like advice regarding Investment scams, our team is here to help. Contact us on 0113 200 9720 or fill in our online contact form on this page and a member of the team will be in touch.
Laura Barbera joined Oakwood Solicitors Ltd as a Solicitor in May 2022. Laura is a dual qualified professional in both the United Kingdom and Spain.
Laura comes from a legal and financial services …
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