An investment scam is a fraudulent scheme where scammers lure victims into investing money with false promises of high returns. These scams often appear professional and legitimate, making them difficult to detect. Fraudsters may use fake websites, cold calls, impersonation tactics, and even fabricated documentation to make their schemes look authentic.
Scammers typically claim to offer investment opportunities in cryptocurrency, stocks, property, social housing, fine wine, and other assets. However, once victims transfer their money, the fraudsters either disappear completely or convince them to invest more, using elaborate tactics to keep them engaged.

Investment scams generally follow a structured pattern. Understanding their tactics can help you avoid falling victim.
1. Creating a Fake Investment Opportunity
a. Scammers design professional-looking websites and documents to make the investment seem real.
b. They may impersonate legitimate financial firms or claim to have insider knowledge of an exclusive opportunity to buy the likes of gold or precious metals at a rock-bottom price. If it sounds too good to be true, it usually is
c. You can read our detailed guide on fake business opportunities here
2. Targeting Victims via Cold Calls, Emails, or Social Media
a. Many scams start with an unsolicited call, text, or email.
b. Fraudsters also use fake social media profiles to appear credible.
3. Using High-Pressure Sales Tactics
a. They claim the opportunity is time-sensitive, forcing you to act fast.
b. Victims often feel flattered or privileged to be “selected” for an exclusive deal.
Encouraging Further Investment
a. Initial investments may show fake profits to build trust.
b. Scammers then encourage victims to invest more before vanishing with the money.