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How to spot and protect yourself from scams

Journalist: Marc Shoffman, Freelance

ended 28. June 2023

The Financial Ombudsman is now seeing increasing numbers of complaints which contain the features of more than one scam. ‘Hybrid’ scams are now common in romance scams, purchase scams, and ‘safe account’ scams.

I am writing a piece for MoneyWeek on this and am keen on comments tackling how to protect yourself from scams and recognise them. Plus, what should you do if you become a victim of one.

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Editor
Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
It's a cliche but beware of things that seem too good to be true. There are no "free lunches" particularly when it comes to investing. To get the potential for any level of return above cash in the bank, this involves the undeniable reality of ups and downs in the value of the investment over time.

There's a limit to what can realistically be achieved, even with investing in a diversified portfolio consisting of global company shares. If you're being promised consistent returns of 10%+ year after year please ask whoever is offering this to get in touch with us as we'd love to know how!

A good starting point to protect yourself from scams and ensure you're working with a legitimate business is to check if they're regulated by the FCA, look at online reviews and use an internet search engine to look at any online footprint the company has and what's written about them. This will often highlight any warning signs that may mean it's time to walk away.