{"id":68782,"title":"Online trading scams","publisher":"Share Talk","author":"sharetalk","published":"2020-02-07T17:31:04+00:00","modified":"2020-02-07T17:31:04+00:00","canonical_url":"https://www.share-talk.com/online-trading-scams/","markdown_url":"https://www.share-talk.com/online-trading-scams.md","json_url":"https://www.share-talk.com/online-trading-scams.json","category":"Blogs","categories":["Blogs","Fintech"],"tags":["Bitcoin","cryptoassets","Financial Conduct Authority (FCA)","foreign exchange","online","scammed","suspicious","trading platform"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&ssl=1","format":"news","language":"en-GB","content":"**Find out how online trading scams work, how to avoid scams and what to do if you are scammed.**\n\nUK consumers are being increasingly targeted by investment scams carried out via online trading platforms where fraudsters offer trades in foreign exchange, contracts for difference and cryptoassets such as bitcoin.\n\n \n\n \n\n## How online trading platform scams work\n\nInvestment scams using online trading platforms are often promoted online and via social media channels. Fraudsters typically promise high returns and use fake celebrity endorsements and images of luxury items to entice people to invest in their scams. The ads then link to professional-looking websites where consumers are persuaded to invest, either through a managed account where the firm makes trades on their behalf, or by trading themselves using the firm’s platform.\n\nMost consumers report initially receiving some returns from the firm to give the impression that their trading has been a success. They will then be encouraged to invest more money or introduce a friend or family member to invest. However, eventually the returns stop, the customer’s account is suspended and there’s no further contact with the firm.\n\nMany scam firms claim to be based in the UK and even claim to be FCA authorised.\n\n## How to protect yourself\n\n- Be wary of adverts online and on social media promising high returns from investing online.\n\n- Always be wary if you are contacted out of the blue, pressured to invest quickly or promised returns that sound too good to be true.\n\n- Always do your own further research on the product you are considering and the firm you are considering investing with.\n\n- [Check the FCA register](https://register.fca.org.uk/) of authorised firms. If you use an unauthorised firm, you won’t have access to the [Financial Ombudsman Service(link is external)](http://www.financial-ombudsman.org.uk/) or [Financial Services Compensation Scheme (FSCS)(link is external)](http://www.financial-ombudsman.org.uk/), so you’re unlikely to get your money back if things go wrong. However, not all investments are regulated by the FCA. For example, we don’t regulate most cryptoassets, but we do regulate certain cryptoasset derivatives (such as futures contracts, CFDs and options). Read more about [cryptoassets](https://www.fca.org.uk/scamsmart/cryptocurrency-investment-scams) and [forex](https://www.fca.org.uk/scamsmart/forex-trading-scams) scams.\n\n- Check they are not a clone – a common scam is to pretend to be a genuine FCA-authorised firm (called a ‘clone firm’). Always use the contact details on our [Register](https://register.fca.org.uk/), not the details the firm gives you.\n\n- [Check the FCA Warning List](https://www.fca.org.uk/scamsmart/warning-list) – use our tool to check the risks of a potential pension or investment opportunity. You can also search to see if the firm is known to be operating without our authorisation.\n\n- [Check with Companies House(link is external)](https://www.gov.uk/government/organisations/companies-house) to see if the firm is registered as a UK company and for directors’ names. To see if others have posted any concerns, search online for the firm’s name, directors’ names and the product you are considering.\n\n- Seriously consider getting independent financial advice or guidance before investing. You should make sure that any firm you deal with is regulated by us and never take investment advice from the company that contacted you, as this may be part of the scam. The Money Advice Service has information on investing and about [how to find a financial adviser(link is external)](https://www.moneyadviceservice.org.uk/en/articles/choosing-a-financial-adviser#how-to-find-a-financial-adviser).\n\n## If you have been scammed\n\nYou can report the firm or scam to us by contacting our [Consumer Helpline](https://www.fca.org.uk/contact) on 0800 111 6768 or using our [reporting form](https://www.fca.org.uk/consumers/report-scam-unauthorised-firm).\n\nIf you have already invested in a scam, fraudsters are likely to target you again or sell your details to other criminals.\n\nThe follow-up scam may be completely separate or related to the previous fraud, such as an offer to get your money back or to buy back the investment after you pay a fee.\n\nIf you have any concerns at all about a potential scam, [contact us](https://www.fca.org.uk/contact) immediately.\n\n## If you’re suspicious, report it\n\nYou can report the firm or scam to us by contacting our [Consumer Helpline](https://www.fca.org.uk/contact-us-web-chat-email-phone-or-post) on 0800 111 6768 or using our [reporting form](https://www.fca.org.uk/consumers/report-scam-unauthorised-firm).\n\nIf you’ve given your bank account details to a firm you think may be operating a scam, tell your bank immediately.\n\nSource [www.fca.org.uk/scamsmart/online-trading-scams](https://www.fca.org.uk/scamsmart/online-trading-scams)"}