Investment scams are on the rise. Here’s how to protect yourself

On 27 June 2025, a former Nasa scientist living in Mansfield, Nottingham, was convicted of defrauding 100 investors out of over £1 million, the BBC reveals.

John Burford had set up a scheme where subscribers were sent daily email alerts with supposedly lucrative investment opportunities.

He went on to lose large sums of their money through risky trades, and even used some of it to purchase a house.

Unfortunately, stories like this are becoming increasingly common as criminals develop more and more ways to separate you from your hard-earned wealth. In 2024 alone, MoneyAge reports that over £1.1 billion was stolen through fraud.

Investing can be a highly effective way to build long-term wealth. Yet, without caution, you could find yourself losing both your savings and your financial confidence.

Continue reading to discover five practical ways to protect yourself from investment scams.

1. Learn how to spot the telltale signs of scams

A practical first step to protect your finances is learning to recognise the telltale red flags of scams.

These often begin with unexpected contact, such as a phone call or message, about an “exclusive” investment opportunity not available elsewhere.

Legitimate investment firms will not cold-call you. So, if someone contacts you out of the blue and asks for personal or financial information, it might be wise to put down the phone immediately.

Scammers will also often try to rush you into making a decision by creating a false sense of urgency. They may say the opportunity is limited or only available for a short time, warning that you’ll miss out if you don’t act now.

This aims to push you into acting based on emotion rather than logic.

Promises of higher-than-expected returns are another red flag. If someone claims they can generate significantly better returns than the market average – especially with little to no risk – this is likely fraudulent.

You might also hear regular use of jargon designed to confuse or distract you from the lack of substance behind an offer.

2. Verify the validity of an investment opportunity

If you believe you’ve spotted some of the aforementioned red flags, a helpful next step is to verify the validity of an opportunity.

You may want to begin by searching for the company or individual’s name on the Financial Services Register, which is provided by the Financial Conduct Authority (FCA).

This is essentially a database that lists all FCA-authorised companies. If you can’t find the firm offering you the opportunity here, it may be prudent to avoid it altogether.

Verifying the firm’s website under its operating name may also be wise. This can help you avoid “clone sites”, which are illegal companies that use URLs with similar names to those of authorised firms.

A common sign of a scam is when a website uses unexpected hyphens or has grammatical errors in the URL.

The FCA also provides a dedicated warning list that highlights any firms or individuals that you should be wary of.

3. Keep your digital footprint secure

Your data is perhaps one of your most valuable assets, so taking the necessary steps to protect your digital footprint is essential.

Scammers often use “social engineering” to gather information about you online and then employ this to tailor their scams or even attempt to access your financial accounts.

As such, you might want to take the time to strengthen your passwords. NordPass states that they should ideally be 20 characters long, have a combination of upper- and lowercase letters, and contain special symbols.

It’s also wise to activate “two-step verification” where possible. This adds an extra layer of security to your data by requiring a second form of identification before logging in, usually a code sent to your phone or email.

This means that, even if a scammer can crack your password, they’ll still need this code to access your account.

4. Base investment decisions around your goals

While the promise of high returns or short time frames can tempt you to act impulsively, it’s vital to base any decisions around your goals.

Before making any decisions, it can help to reflect on why you’re investing in the first place. If your aim is to retire comfortably or preserve wealth for future generations, you should ideally take a long-term view.

In this instance, there’s little point in taking on unnecessary risk to generate quick returns.

Focusing on your financial priorities could ultimately make you less vulnerable to scams. Indeed, you’re far more likely to question whether an offer makes sense for your unique circumstances, rather than being swept away by the promise of lucrative returns.

This is why a robust investment strategy from your financial planner could help you filter out distractions and stay on course (more on this in the next section).

5. Work with an authorised and regulated financial planner

Even despite your best efforts, it’s still relatively easy to fall victim to a scam, especially as fraudsters are becoming increasingly convincing.

This is why it can be reassuring to work with an authorised and regulated financial planner.

At Caliber, we offer more than just investment advice – we can help you objectively examine any opportunities, assess risk, and make informed decisions that align with your long-term goals.

Most importantly, we can provide an extra layer of protection, warning you if something doesn’t look right.

If you’re unsure about an investment opportunity or simply wish to discuss your long-term financial plan, please email contact@caliberfm.co.uk or call 01525 375286 to speak to one of our team today.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.