How to Stay Protected from Online Scams and Financial Fraud

We’ve all heard the phrase, “If it seems too good to be true, it probably is.” Unfortunately, today’s online scams are becoming more convincing than ever, often mimicking genuine companies and professionals so well that even the most cautious person could be caught out.

Staying protected is about staying informed. By understanding the latest tactics and knowing what to do if you’re targeted, you can help keep your money and personal details safe.

The Rise of ‘Finfluencers’ and Online Investment Scams

Social media has made financial information more accessible than ever. From quick investment tips to “money hacks,” there’s no shortage of advice online. However, this accessibility comes with a hidden risk.

A growing number of scams now start on platforms where so-called ‘financial influencers’ share guidance that can look professional but isn’t always legitimate.

Recently, fraudsters have even used AI-generated videos and deepfakes to impersonate well-known investors, promoting fake opportunities that encourage people to join private groups or messaging channels. Once inside, users are pressured to invest in certain stocks or schemes that benefit the scammers.

It’s worth noting that not everyone offering financial content online is a scammer. Many creators genuinely want to educate and inspire. The challenge is knowing who to trust.

Before acting on any financial information you find online:

Check the Financial Conduct Authority (FCA) ScamSmart Investment Checker to make sure the company or opportunity isn’t on a warning list.

Look up advisers or firms on the FCA Financial Services Register to confirm they’re properly authorised and regulated.

These simple checks take moments but could save you thousands of pounds.

Common Warning Signs of a Scam

Scams come in many forms, but they often share the same red flags:

Private Messages After Public Posts

Fraudsters often post public investment “opportunities” and then encourage people to move to private chats on platforms such as WhatsApp, Telegram, or Discord.

High-Pressure Tactics

You might see messages like “Act now or you’ll miss out!” or “This offer ends today!” Legitimate financial advisers and institutions will never rush you into making quick decisions about your money.

Promises of Guaranteed High Returns

Be wary of any investment that claims to offer large profits with no risk. All genuine investments carry some level of risk - and the higher the potential return, the higher the potential loss.

What To Do If You Think You’ve Been Scammed

If you believe you’ve fallen victim to a scam, contact your bank or adviser immediately. You should also report the incident to Action Fraud on 0300 123 2040.

Be cautious of anyone who contacts you afterwards claiming they can help you recover your lost money. This is known as a “secondary scam”, and it’s sadly common. Never share personal or financial details with anyone unless you’re completely certain who they are.

Staying Scam-Aware and Up to Date

Fraudsters are constantly changing tactics, which means staying informed is key.

You can find practical advice, updates on the latest scams, and tips on how to protect your data and devices through the Take Five to Stop Fraud campaign.

Their core advice is simple but effective:

Stop - Take a moment before sharing money or personal information.

Challenge - Could the opportunity or message be fake? It’s okay to say no or ignore it.

Protect - If you think you’ve been scammed, contact your bank and report it to Action Fraud immediately.

Financial scams can happen to anyone, but by staying alert and verifying sources, you can protect yourself and your hard-earned money.