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Education & Investor Protection

Practical guidance to help you invest safely, recognize fraud, and know your rights.

ScamSmart · Know before you invest

Investor Protection

Before you place money with any firm, take three simple steps to protect yourself.

1

Verify the licence

Search the FMC register and confirm the firm's licence number and status. FMC register. ed_b3_after

2

Read the terms

Understand deposit, withdrawal, and fee conditions before transferring any money.

3

Keep records

Save transfer receipts and platform statements — you'll need them if you ever file a complaint.

£1.2bn
Lost to investment fraud (UK, yr)
1 in 4
Adults targeted by a scam
24 hrs
Best window to report to your bank
Free
To check the FMC register

A quick pre-investment checklist

Customer Advisories

Advisory — cloned firms. Advisory — cloned firms. Scammers copy the names and licence numbers of legitimate firms. Always reach the firm through the contact details listed on the official FMC register, never through a link or number they send you.
Advisory — "guaranteed" returns. Advisory — \
Advisory — withdrawal blocks. Advisory — withdrawal blocks. If a firm invents new fees or \

Common types of investment scam

Fraud evolves constantly, but most investment scams fall into a handful of recognisable patterns:

Clone-firm fraud

Criminals impersonate an FMC-authorised firm, copying its name, branding, and licence number to appear genuine.

Boiler-room scams

High-pressure sales calls pushing shares or bonds that are worthless, overpriced, or non-existent.

Recovery-room fraud

Victims of a previous scam are contacted by \

Romance / \

A trusted online relationship is used to lure the victim onto a fake trading platform over weeks or months.

Crypto-investment fraud

Fake exchanges or \

Ponzi & pyramid schemes

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Fraud Awareness — Red Flags

Think you've been targeted? ed_b42_before File a complaint ed_b42_after

If you think you've been scammed

Act quickly — the sooner you report, the better the chance of stopping further loss:

  1. Stop all payments

    Do not send any more money, however convincing the reason given. Recovery fees are themselves a scam.

  2. Contact your bank

    Tell your bank immediately — they may be able to halt or recall a recent transfer.

  3. Gather your evidence

    Save messages, statements, screenshots, and the firm's details before they disappear.

  4. Report to the FMC

    ed_b52_before File a complaint ed_b52_after

  5. Report the crime

    Report fraud to the national reporting centre (Action Fraud) and obtain a crime reference number.

Your protections

Client-money segregation
Authorised firms must hold your money in separate, safeguarded accounts, ring-fenced from their own funds and reconciled daily.
Compensation scheme
If an authorised firm fails and cannot return your money, eligible consumers may claim compensation from the statutory scheme, up to the published limit.
Independent complaints
If a firm does not resolve your complaint fairly, you can escalate to an independent ombudsman service free of charge.
The FMC register
A free public record letting you verify any firm's licence, permissions, and status before you invest.
Important: Important: these protections generally apply only to authorised firms. If you deal with an unauthorised firm or an overseas entity, you are usually not covered — another reason to check the register first. check the register firms. If you deal with an unauthorised firm or an overseas entity, you are usually not covered — another reason to

Learning Center

How investment licensing works

What an FMC licence means — and what it does not cover.

Understanding client-money segregation

How your money should be held separately from the firm's.

What happens after you complain

A walkthrough of the FMC complaint and investigation process.

Your rights as an investor

Disclosure, fair treatment, and access to your money.

Risk & diversification basics

Why higher returns mean higher risk, and why not to put everything in one place.

Spotting fake platforms

How to tell a genuine trading platform from a convincing fake.

Glossary

Authorisation
Formal permission from the FMC for a firm to carry on regulated investment business.
Client money
Money a firm holds on your behalf, which must be kept separate from the firm's own funds.
Due diligence
The checks you make on a firm before investing — starting with the FMC register. FMC register. ed_b83_after
Leverage
Borrowing to increase exposure; it magnifies both gains and losses and is high-risk for most investors.
Restitution
Money a firm is ordered to return to investors following enforcement action.

Frequently asked questions

How do I check if a firm is genuine?

Search the FMC register for the firm's exact name and licence number, and contact it only through the details listed there. If it is not on the register, do not invest. FMC register. ed_b90_after

I was promised guaranteed profits — is that legal?

Genuine investments never guarantee returns. Any firm promising guaranteed high profits with no risk is almost certainly a scam — report it to the FMC.

A \

No. Recovery-room fraud targets previous victims. Legitimate authorities never charge an up-front fee to recover funds. Report the approach to the FMC.

Will I get my money back if a firm fails?

If an authorised firm fails, eligible consumers may claim from the statutory compensation scheme up to the published limit. Cover does not usually extend to unauthorised or overseas firms.