Spotting investment scams

Investment fraud does not announce itself. It arrives looking like the thing you were already hoping to find, which is the entire technique.

The signs that matter most

1. Guaranteed or unusually steady returns. Real investments fluctuate. A record showing consistent monthly gains with no losing periods is describing something that does not exist in markets — and steadiness, not size, is the most reliable marker of fabrication.
2. Urgency. Closing soon, limited allocation, decide today. Urgency exists to prevent you from checking, and there is no legitimate opportunity that evaporates while you verify it.
3. Difficulty withdrawing. Deposits are effortless; withdrawals develop complications, fees or delays. This is often the first hard evidence.
4. Unregulated or offshore. Every protection you have comes from regulation. A platform outside it can hold your money however it chooses.
5. Recruitment. If returns depend on introducing other people, the returns are coming from those people.
6. Complexity used as reassurance. A strategy explained in terms you are invited not to worry about is a strategy you cannot evaluate.

The social layer

Many frauds spread through communities — a workplace, a congregation, a group of friends. The introduction comes from someone trusted who is themselves a victim and does not know it yet, which removes the scepticism a cold approach would meet.

What to actually do

• Check the firm on the regulator's own register, using contact details from the regulator's website, never from the firm.
• Search the name with the word “warning” or “review” before sending money.
• Attempt a small withdrawal early, before committing more.
• Treat any pressure to decide quickly as a reason to stop entirely.