Share Fraud UK: How to Spot and Avoid Investment Scams
Scammers are targeting UK investors with convincing fake share trading schemes—here's how to spot them before you lose money.
What is this scam?
Share fraud is an investment scam where criminals pose as legitimate stockbrokers, investment advisors, or trading platforms to trick you into buying fake shares or investing in bogus companies. The scammer creates a convincing persona—often with professional-looking websites, credentials, and communication—to build trust. They typically target people with little investment experience or those seeking quick financial gains.
Once you've 'invested,' the scammer either disappears with your money or pressures you to send additional funds to 'unlock returns' or 'cover fees.' Common variations include pump-and-dump schemes (driving up fake stock prices then vanishing), romance scams involving investment advice, and impersonation of regulated UK brokers like Hargreaves Lansdown or Interactive Investor. The Financial Conduct Authority (FCA) maintains a list of unauthorised firms running these scams.
Warning signs to look for
- Unsolicited contact via email, phone, WhatsApp, or social media offering investment opportunities or 'exclusive tips' on shares.
- Promises of unusually high returns (15–50% per year) with little or no risk—legitimate investments never guarantee returns.
- Pressure to act quickly or 'limited time' offers to invest before a deadline.
- Website that closely mimics a real FCA-regulated broker but has a slightly different URL (e.g., 'hargreaves-lansdown.co.uk' instead of 'hl.co.uk').
- Requests to transfer money to personal bank accounts or cryptocurrency wallets instead of a regulated trading platform.
- Poor spelling, grammar, or unprofessional design on their website or communications.
- Inability or refusal to provide FCA registration details or regulatory information when asked.
- Requests for additional payments for 'taxes,' 'admin fees,' or 'processing charges' before you can withdraw profits.
How this scam works step by step
The scam typically begins with unsolicited contact—a cold call, email, or message on LinkedIn or Facebook offering 'insider knowledge' of an upcoming share or investment opportunity. The scammer builds rapport over days or weeks, sometimes using a romance scam approach to deepen trust. They may create a fake trading platform that looks legitimate, with convincing charts and fake 'account balance' updates showing your investment growing. Once you're convinced, you're asked to send money via bank transfer, credit card, or cryptocurrency. The scammer confirms receipt and shows fake statements proving your investment is performing well.
If you ask to withdraw profits, they invent obstacles: unexpected tax bills, admin fees, or claims that you must invest more to 'unlock' your returns. Eventually, they either disappear entirely or pressure you to send increasingly large amounts. Throughout, you're isolated from genuine financial advice because you've been told not to discuss the 'confidential opportunity' with your bank or family.
How to verify if it is genuine
Before investing any money, always verify the firm's credentials independently. Check the FCA register at register.fca.org.uk—enter the company name or check their regulated status. If it's not listed, it's almost certainly a scam. Call the company directly using a phone number from their official website or a directory listing, never from contact details they provided. Ask specific questions: What is your FCA registration number? Who regulates you? Can you provide independent references? Genuine brokers are happy to answer. Cross-check the website URL carefully—scammers often use domains that look almost identical to real firms.
If you're unsure, contact your own bank's fraud team or call Citizens Advice consumer helpline (0808 223 1133) for verification. Never rely on testimonials or reviews on their own website—visit independent review sites like Trustpilot and check if ratings seem suspiciously perfect or one-sided. Finally, check if the firm appears on the FCA's list of unauthorised firms warning list.
What to do if you have already interacted
If you've been contacted but haven't sent money, stop all communication immediately and do not send any funds or personal information. Block the sender's phone number, email, and social media account. Take screenshots of all communications for evidence. If you've already transferred money, act quickly: contact your bank within 24 hours and explain you've been scammed. Banks can sometimes recover funds if they're still in transit. Report the scam to Action Fraud (0300 123 2040 or online at actionfraud.police.uk) and the FCA's Consumer Warnings page.
If the scammer used an email address, report it to the NCSC Suspicious Email Reporting Service (report@phishing.gov.uk). If they contacted you via SMS with a fake investment link, forward the message to 7726. Do not attempt to contact the scammer to demand money back—this may lead to further manipulation. Consider reporting to Citizens Advice (0808 223 1133) for additional support and advice on potential recovery routes.
Reporting this scam in the UK
Report share fraud to Action Fraud immediately by calling 0300 123 2040 (free, Monday to Friday 8am–8pm, Saturday 9am–5pm) or filing a report online at actionfraud.police.uk. Provide all evidence: transaction details, screenshots, emails, and the scammer's contact information. Report the fake trading platform or website to the NCSC Suspicious Email Reporting Service at report@phishing.gov.uk if they used email; forward SMS scams to 7726. Contact the FCA's Consumer Warnings service to report unauthorised firms claiming to offer investments. If money was sent via cryptocurrency, report the transaction to the relevant crypto exchange where you purchased it.
Call Citizens Advice consumer helpline on 0808 223 1133 for free advice on your options and potential next steps. Alert your bank's fraud department immediately—they may be able to halt or recall the transfer. Report the scammer's social media profiles (Facebook, LinkedIn, WhatsApp) to those platforms directly for impersonation or fraud. Keep all documentation for insurance or civil recovery claims.
Frequently asked questions
Is the person or platform contacting me legitimate, or is share fraud always obvious?
Share fraud is deliberately designed to look legitimate—scammers use professional websites, real-sounding company names, and impersonate actual FCA-regulated firms. The best way to verify is to independently check the FCA register at register.fca.org.uk using the company name or registration number. If the firm is not listed, or if they contacted you unsolicited with guaranteed returns, treat it as a scam. Legitimate investment firms rarely cold-call unsolicited investors.
What should I do if I've already sent money to a share fraud scammer?
Contact your bank immediately and report the transfer as fraud—banks can sometimes recover funds within 24–48 hours if the money hasn't been withdrawn. Report the scam to Action Fraud (0300 123 2040) and the FCA. Report the fake website or email to the NCSC. Do not send any more money, even if the scammer claims you need to pay 'taxes' or 'fees' to unlock your funds. Consider reporting to Citizens Advice (0808 223 1133) for advice on potential recovery routes or civil claims.
Can scammers steal my personal details while trying to trick me into investing?
Yes—share fraud scammers often collect your personal information (full name, address, date of birth, National Insurance number) as part of the 'investment process.' This information can be used for identity theft, opening fraudulent accounts, or sold to other criminals. Never provide identity documents, driving license numbers, or banking details to an unsolicited investment contact. If you've already shared details, contact Cifas (cifas.org.uk) to register fraud alert on your name, and monitor your credit file at Experian, Equifax, or CallCredit for suspicious activity.
How do I report a share fraud scam in the UK?
Report to Action Fraud by calling 0300 123 2040 or visiting actionfraud.police.uk with your transaction details and evidence. Report the fraudulent email to the NCSC at report@phishing.gov.uk and SMS scams to 7726. Contact the FCA's Consumer Warnings page to report unauthorised investment firms. Tell your bank immediately so they can flag the account. Report fake social media accounts directly to the platform (Facebook, LinkedIn, WhatsApp). Keep all evidence and contact Citizens Advice consumer helpline (0808 223 1133) for additional support.