Simple tips to protect yourself from investment scams

Financial scams continue to be prolific in the UK. The good news is that by being aware of the tricks they use and taking some simple precautions, you can spot a scam and protect yourself from falling for it.  Our experts from our Financial Crime team share their insights with you.

Investment frauds can often be very difficult to spot, particularly because they are designed to look like genuine investment opportunities. Scammers often try to impersonate legitimate businesses, or employees, to trick people into investing.

We would like to remind all advisers of the heightened risk associated with client requests received via email.

Fraudsters may attempt to exploit email communication by impersonating clients and contacting advisers directly. In several recent cases, client email accounts were compromised, enabling fraudsters to request changes or obtain verification codes intended for the genuine client.

Requests requiring particular vigilance include (but are not limited to):

• Changes to client contact details
• Withdrawal requests (including pension withdrawals)
• Any request marked as urgent or time‑sensitive

When receiving requests by email, advisers should not act on the instruction without first completing a verbal confirmation call directly with the client. This step is highly recommended, regardless of how genuine or urgent the request may appear.

Please be particularly alert for:

• Pressure to bypass normal processes.
• Requests for speed or confidentiality.
• Whether email would typically be the client’s usual method of communication for this type of request.
• Subtle changes in tone, wording, or urgency compared to the client’s usual communications.

Quilter recommends email instructions alone are not relied upon, especially involving key material changes as noted above. A direct call to the client, using known and trusted contact details, is essential to confirm the instruction and protect both clients and the business.

Your continued diligence is critical in preventing fraud and safeguarding your clients.  Should you have any questions or have potential fraudulent concerns please contact your Relationship Manager at your earliest convenience.

People tend to be more vulnerable to scams during times of financial hardship – such as the current cost-of-living crisis – as a lucrative investment has heightened appeal and can cloud people’s judgement.

Fraud Targeting Consumers

Fraudsters continue to offer consumers investments promising them too-good-to-be-true performance, being considerably higher than the market average. Fraudsters support these scams with use of falsified brochures containing stolen company logos and information.

Here are five key tips to protect yourself from investment scams:

1. Be aware that scammers will go to great lengths to make their advertisements, brochures, websites and investments look genuine. Always double check.
2. Scammers may spend months building up relationships with their potential targets. They will even call their potential victim on the phone using a spoofed number, or a mobile number. If you are approached by an individual from a financial business, look up the official website (see below), and contact the firm using the switchboard number. Make sure you speak with the fund manager/adviser at the business to verify that it is them.

3. To help fight financial crime, the FCA has launched Firm Checker, a tool to help consumers avoid scams. You may have also seen their recent TV ads supporting this. By using the tool and checking if a firm is authorised and has the correct permissions to provide services, people can significantly reduce their chances of falling victim to fraud. You can also verify a Quilter website by checking Quilter’s official website and email addresses to see a complete list of our legitimate sites and domains. Never rely on links or registration details forwarded to you; always check these yourself.

4. Stop and think. If you are contacted about an investment opportunity, take a moment to stop and think before parting with your money. Don’t be rushed into making decision. Remember, legitimate organisations will never pressure you into investing on the spot. It's ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.
5. It’s better to be safe than sorry – before you invest any money, do your own research: no matter how trustworthy a company looks.

If you believe you’ve been targeted by someone impersonating any of Quilter’s brands, please let us know by using our Scam Reporting Form. Our Financial Crime team can then investigate