Scams vs real advice
Lesson 11 of 12 in our free Investing Basics guide: a 5-minute money game with the key points below.
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Questions you'll answer
Someone offers investment advice. What's the smartest first check?
Quick facts
- Red flag: “Bro I saw your profile, you've got winner energy.” — A stranger sliding into your DMs with flattery is how the hook starts.
- Red flag: “My students make 20% a WEEK, zero risk” — Impossible returns with 'zero risk' = scam.
- Red flag: “Just send £250 in crypto to my wallet to unlock VIP signals” — Paying a stranger in crypto is very hard to reverse or trace.
- Red flag: “— only 5 spots left!” — Fake scarcity and urgency.
- Red flag: “Recruit 3 friends and your fee is refunded!” — Pay-to-join plus recruit-your-friends is pyramid/Ponzi energy.
- Red flag: “Screenshots of my supercar attached.” — Flashy lifestyle pics prove nothing. They're easy to fake or borrow.
- A personal recommendation about what to do with your money → Regulated advice. That's advice — must come from an FCA-authorised adviser.
- A government-backed service explaining how pensions work → Free guidance. Guidance gives info and options, not a personal recommendation.
- An adviser who must check your situation and goals first → Regulated advice. Regulated advice includes a suitability check.
- General info about what ISAs are → Free guidance. Guidance — like this app!
- Myth: “If you pay a scammer, you're always protected by the FSCS.” — FSCS covers failures of authorised firms, not money sent to scammers or normal investment losses.
- Fact: “You can report investment scams.” — Report to Report Fraud, formerly Action Fraud (or Police Scotland), and you can tell the FCA too.
- Fact: “Social media 'finfluencers' promoting investments must follow promotion rules.” — Promoting financial products illegally is a crime in the UK. Many still break the rules — stay sceptical.