The value of investments can fall as well as rise and you could get back less than you invest. If you’re not sure about investing, seek professional independent advice. Barclays does not offer tax advice and the article below does not constitute advice nor a recommendation to invest.
We all know the saying “if it looks too good to be true it probably is” but when scams are increasingly credible it’s important to stay informed as well as being sceptical.
Anyone can be tricked by a scammer but the best way to keep yourself and your accounts safe is to stay informed of the scammers’ latest tactics, and the steps you need to take should the worst happen.
The rise and risk of financial advice on social media
We’ve seen a significant rise in the number of ‘finfluencers’ – social media personalities offering financial guidance to their followers. These channels are popular with investors and it’s easy to see why. The information is widely accessible, engagingly presented and promises a fantastic mix of fast profit and security.
But it’s important to look beyond the glossy presentation because more than half of investment scams now start on social media.
Recent scams include AI impersonations of well-known figures in the investment world promoting bogus investment opportunities where unwitting investors are asked to join messaging groups and pushed to buy a specific stock to inflate the price so the scammers can profit.
Not all finfluencers are scammers and many of the discussions online are positive with shared motivation and support for first-time investors. The problem is that it can be hard to tell if your source is an expert, a scammer or an enthusiastic amateur sharing inaccurate but well-intentioned information.
We strongly advise you make sure your sources can be trusted before taking any further action. Doing a little digging to understand where your information is coming from is never a waste of time.
You can use the FCA’s ScamSmart Investment Checker to make sure the firm promoting the investment isn’t on their warning list.
You can also check individuals and businesses on the Financial Services Register to make sure they’re authorised by the FCA and find out how to contact them outside of social media.
Warning signs
Scams vary widely but there are some features we’ve seen time and again.
The first is public posts on social media or online forums pushing potential investors towards private messaging platforms such as WhatsApp and Discord.
The second feature is pressure – especially a pressure to act in a certain, usually short, time frame. Scammers use phrases like ‘Act now or miss out’ or ‘You must respond immediately”. Reputable financial institutions won’t apply pressure to act fast without thinking your decision through.
The third common feature of scams is the promise of secure or guaranteed high returns. There are no investments which offer large profits without risk, all investments carry a risk of loss and the higher the potential reward the higher the risk associated with the investment.
What to do if you think you've been scammed
If you think you’ve been scammed, please call us. You can also report the event to Action Fraud on 0300 123 2040.
Report fraud or scam to Barclays
Once you’ve been the victim of a scam it’s common to be contacted again in what’s known as a ‘secondary scam’. Many victims are targeted by fraudsters claiming they can help recover lost money. Please exercise extreme caution and never give your personal details, account information or any other financial data to someone contacting you and offering to help unless you’re sure of their identity.
How to stay up to date on the latest scams
Our fraud and security centre has more information on staying scam aware including details of the latest scams. There’s also a quiz to test your scam awareness and advice on protecting your data and your devices.
Fraud and security centre
We’ve partnered with Take Five to Stop Fraud who work to help everyone in the UK confidently challenge suspicious activity and protect themselves from financial fraud.
Take Five to Stop Fraud
Take Five’s core advice is:
- First, stop and take a moment to think before parting with your money or information.
- Second, challenge the information; could the opportunity be fake? You can reject, refuse or ignore requests.
- Third, protect yourself and contact Barclays and Action Fraud immediately if you think you’ve been scammed.
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