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Action Fraud UK warns against investment frauds on Instagram

Feb 27 2019
By
Jonathan Smith

 

The UK reporting centre for scams Action Fraud has warned Instagram users of fraudulent ‘get rich quick’ investment schemes being advertised on app. Over the past 5 months Instagram victims have reportedly lost around £9,000 each, or £3 million in total.

 

The fraudsters are targeting mainly young people - those in their early 30s, 20s and even teenagers. The users of the photo-sharing app are promised skyrocketing profits within 24 hours if they invest £600 or more. After depositing, the victims receive some screenshots supposedly evidencing the spectacular returns. Once those Instagram users request to withdraw, however, the scammers shut down the accounts and disappear with the money.

 

Payments are usually made via bank wire and statistics show that bank transfer fraud cost UK victims £145m in the first six months of last year, with only £31m being successfully returned to those who have been scammed.

 

The UK’s Financial Conduct Authority (FCA) also reported that British investors have lost more than £197 million to scammers in 2018, 85% of which are related to trading in forex and CFDs.

 

The Australian Cybercrime Online Reporting Network Scamwatch operated by the Australian Competition and Consumer Commission (ACCC) reveals a similar picture. Australians reportedly lost $38 846 635 collectively to investment scams in 2018.

 

Action Fraud UK recommends that potential investors always check the credentials of any financial company on the FCA’s website. Also, promises of high and quick profits made on Instagram, Facebook, whatever app, social media or a website should always raise a red flag. 

TAGS: scam  Instagram  forex brokers  UK  FCA 

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