Investment Scams
Learn how to recognise an Investment Scam and what to do if you encounter one.
An investment scam occurs when a criminal tricks someone into investing money into a scheme or venture that does not exist, ultimately transferring funds to the fraudster’s account. Fraudsters often advertise investment opportunities online, through social media adverts or generic comparison websites and commonly imitate a legitimate brand. The scams promise attractive returns that are usually higher than other retail investment opportunities.
Common investment scams include shares, bonds, cryptocurrencies, pensions and overseas land investment.
Key Advice
Be Informed:
- Research thoroughly: Check the individual and firm for qualifications, credentials, reputation and history. Be wary of brochures that may appear legitimate. Contact the investment firm directly using numbers from their official website or anther reputable independent source. The Central Bank Consumer Hub is a good place to start.
- Verify the Information: Check all information with a trusted third party such as a legal/financial professional and consult family and close friends.
Be Alert:
- Take your time: It is important to note that there are very few legitimate investment opportunities that require you to hand over or transfer money immediately.
Be Secure:
- Check again: If you have made an investment in recent weeks or months it is always worth checking the details again and verify the investment firm’s details through an independent and reputable source.