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Financial scams are evolving – everyone’s a target

  • 3 minute read
We are all susceptible to the temptation of quick answers! Between hectic careers, busy social lives and family commitments, it’s no wonder that many of us turn to quick online sources for financial advice. Social media, internet searches, and even AI chatbots can feel like an easy way to get answers. While the guidance may be free and convenient, it is often unregulated and that can come at a cost.

In fact, research1 shows that 40% of UK investors have used social media to guide financial decisions in the last two years. Around one in ten relied on so-called ‘finfluencers’ – financial influencers on platforms like TikTok and Instagram. The problem? More than half of those who acted on this kind of advice ended up losing money2.

Cloning scams – a growing threat

One of the most serious risks is the rise of cloning scams. These are fake websites and apps that look almost identical to trusted financial firms. They use logos, colours and even security certificates to trick people into believing they’re legitimate. Money transferred in good faith disappears straight into the hands of criminals.

Often, messages will create a sense of urgency, telling you to act now before you miss out or risk losing your investment. This pressure is deliberate and it works. Even experienced investors can be caught out.

Fraud through WhatsApp and messaging apps

Scammers also know that many of us rely on WhatsApp or Messenger to keep in touch with family and friends. Increasingly, they are sending messages that look like they come from someone you know or a financial adviser. These might promote a ‘can’t-miss’ investment or warn you about an urgent issue with your money. These channels feel personal, so it’s easy to lower your guard.

The regulator is stepping up

The Financial Conduct Authority (FCA) is cracking down hard on scams and misleading promotions. In 2024 alone, it blocked or removed over 1,600 suspicious websites and worked with tech companies to take down more than 50 scam apps. It also forced nearly 20,000 misleading promotions to be amended or withdrawn; a huge rise compared with fewer than 600 just three years earlier.

The FCA has also turned its attention to finfluencers, many of whom are promoting risky or misleading advice without authorisation.

How to protect yourself

Despite regulatory efforts, prevention remains the best protection. Even experienced investors can fall victim to scams. Discussing your financial plans with a qualified, regulated financial planner is the safest way to avoid fraud and risky investments.

Key steps to protect yourself:

  • Verify the source – only use financial platforms and advisers regulated by the FCA. Check their registration on the Financial Services Register
  • Be cautious of urgency – if you’re pressured to act immediately, take it as a warning sign
  • Check URLs and apps carefully – even small spelling differences in web addresses can indicate a cloned site. Only download apps from official stores
  • Question social media advice – finfluencers are not regulated and may promote high-risk or self-serving investments.

A smarter way forward

Financial scams are becoming more sophisticated, but that doesn’t mean you’re powerless. By being vigilant and seeking guidance from your financial planner, you can protect your hard-earned money and make confident, informed decisions.

After all, your finances should be working as hard as you are – for your family, your home and your future.

1Fidelity International, 2025, 2TSB, July 2025

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.