Advanced fee and investment scams
30 April 2024
Our data shows that although Investment scams made up only 6% of the total reports we received in 2023, they had the highest value (£46m) which was 33% of the value of claims. They also had highest claims value in 2022 and 2021. Another notable scam type was Advance Fee, making up 11% (6.3K) of claims volume and 8% (£10.6M) of claims value. With the large volumes and values associated with these scams, we want to break them down to help you build confidence so you can prevent yourself and those around you from falling victim.
Advanced fee scams
What is an advanced fee scam?
When fake companies ask for an upfront fee and then don’t provide the service you’ve paid for.
Scammers create fake adverts for rental properties at low prices, when the property doesn’t exist or has already been rented to multiple victims at the same time.
How do they do this?
This is achieved by producing fake online or social media adverts that say there’s available housing at reduced rent costs, ultimately tricking victims into signing contracts or paying an upfront fee. They’ll then pose as the agent who’s showing the property.
How can we fight back?
The key tip is to be vigilant, if you see an advertisement for a property that seems too good to be true, then it probably is. You should also always do your own research on the company, or the person you’re dealing with.
This will help you confirm the advertiser is genuine and the property exists and is available. Also, don’t feel pressured into transferring large sums of money, especially just to view the property.
It’s not just properties that scammers will use to request advanced fees. It can be tempting to snap up a good deal as soon as you see it, but it’s worth taking a moment to check if it’s genuine. You should always do your research before agreeing to any type of loan, finance or purchase.
Here are a few things you can do:
- Be wary of paying an upfront fee to secure a rate – no reputable company will ask you to do this
- Don’t be pressured into an agreement, even if the rate is only available for a short time
- Check reviews for offers on social media– see if they appear on other websites to be sure they’re not fake.
Investment scams
Now more than ever, people want their money to go further, which may mean they’re looking for a range of investments. Scammers are taking advantage of this by posing as genuine companies and exciting new start-ups.
They may offer a great deal or say they can help you set up the investments using screen sharing software (which gives the scammer access to your computer and all your money).
Guidance
Be wary of anyone offering to “help” you with financial transactions using screen sharing technology. This can give them more access than you think, and it could compromise your bank accounts.
- Always check the FCA website for help and advice including a company’s genuine contact details, known scams and cloned companies
- It’s always good to speak to a friend or family member before investing, or a registered financial advisor.
