In recent weeks, the media has been filled with news of the cyber-attacks on the Co-op and M&S, which caused major disruption for both companies. Worse still, both have warned that some customer data was accessed by the hackers, who are believed to be part of a sophisticated criminal group.
It’s a sobering reminder of how sophisticated and determined criminals can be. Sadly, it’s not only businesses that need to be on their guard against criminals: we all need to be vigilant.
This could be especially true if you’re an investor, according to an FT Adviser article in May 2025. It revealed that more than £649 million was lost to investment fraud in 2024 alone, with those aged between 55 and 64 suffering the greatest losses.
Furthermore, while the number of reports dropped by 7% when compared to 2023, the amount stolen by fraudsters rose by 13%.
The chance of being contacted by scammers is all too high
Sadly, in today’s world there’s always the chance that criminals could target investors directly. Because investments, particularly pension pots, can be extremely valuable, scammers have increasingly focused on those who hold them.
The issue can often be telling the scammers apart from genuine companies, as criminals are adept at creating convincing looking products that seem to offer attractive returns. In reality though, investing in them will cost you dearly.
Worse still, if a fraudster does steal your pension, the dream retirement you were on track to enjoy could disappear. All that said, there is some good news, as there are powerful actions that you can take to help safeguard your investments and pensions.
Read on to discover five steps that could help you to identify a scammer.
1. Be careful on the internet
While the internet has many adverts promoting investments and pension schemes, care should always be taken when considering these adverts. Fraudsters use adverts to lure investors into their bogus products and typically offer higher returns than bona fide’ investments and pensions.
It’s worth noting that in some cases, the rates being offered may not be that much more than those offered by genuine investments and pensions, as criminals know this looks more believable. Additionally, these adverts may also appear on comparison sites, so it’s important to always remain diligent when using them.
It’s worth remembering that if it sounds too good to be true, it probably is. Working with an FCA registered financial adviser removes the chances of you falling foul of a scammer and losing a significant amount of money.
2. Beware of vague explanations
Fraudsters tend to use vague explanations when talking about their investment and pension products. While they will attempt to make them sound more genuine by using jargon, they normally focus on their claim that their product provides high returns for low risk.
As greater growth potential always means higher levels of risk, you should be extremely wary of anyone who claims their investment or pension scheme offers high returns for little or no risk.
3. Ensure you’re talking to a genuine financial advice firm
Fraudsters often use company names that are similar to a genuine, regulated advice business. More than this, criminals also create professional and authentic looking ‘clone’ firms that use official-looking websites, literature and adverts.
In some cases, criminals may even use a genuine financial advisory firm’s Financial Conduct Authority (FCA) number and contact details. For this reason, it’s always worth checking the FCA’s warning list to see if the company you’re speaking to is on it.
If it’s not, check against the FCA register to ensure legitimacy.
4. Look out for the tell-tale signs of a scam
While criminals can be extremely sophisticated and convincing nowadays, they still tend to rely on ‘tricks’ that are designed to flatter or panic you into a decision. If you spot any of the following tricks that scammers often use, you should be extremely wary of continuing any further:
- Unsolicited contact. Criminals often contact their victims out of the blue using email, texts, social media, post, phone calls or in person. If you are contacted, be very careful
- Pressure to act quickly. Scammers may offer a bonus or discount if you invest quickly, or claim the opportunity is only available for a limited time
- Exclusive offers. If you are told that you have been specially chosen for an investment opportunity, take it with a pinch of salt as it’s likely to be a scam. If you are told that you should keep the exclusive offer a secret, the best thing you can probably do is to stop the conversation
- Trying to establish an overly friendly rapport. Fraudsters will try to build a friendship with you to put you at ease
- Using emotive language to influence your feelings. Criminals will try to entice or heighten feelings of worry, fear or excitement, so that you make a decision based on emotion, not logic
- Impersonating authority. All too often scammers claim to be from an official organisation, or Government department to give themselves more credibility and influence. If you are contacted by someone claiming to be an official, stop the conversation, find the genuine contact details for the organisation and speak to them directly.
5. Working with a bona fide financial adviser
Speaking with a genuine financial planner, who is authorised and regulated by the FCA, is the most effective way to safeguard your money from scammers. A bona fide adviser will always explain their recommendations, and the risks involved in a clear and understandable way.
Get in touch
As one of the UK’s largest truly independent financial advice companies, we’re here to help you to get more from your wealth. If you’re looking to invest or want to plan for retirement, we’ll explain the risks and potential opportunities that may be open to you using clear, jargon-free language.
If you would like to discuss your options, please call us on 0333 010 0008 to arrange a no obligation initial meeting with one of our independent financial advisers.
6 June 2025