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Why do scams work? 

More people can now invest in stocks, assets, and digital currencies (cryptocurrency) than ever before. Many are using the Internet and social media to learn where to put their money. But with so many choices and with so many scams out there, there's a big chance of getting tricked or making a bad choice. Scammers use several tactics to try to trick people: 

 

Common Investment Scams:  

  • Cryptocurrency Scams:  Scammers will create fake digital coins, wallets, or exchanges to steal your money. 
  • Ponzi Scheme: Early investors are paid with money from new investors, not real profits. Eventually, these collapse when new money stops coming in. 
  • Recovery Scams: Fraudsters target individuals who have previously been scammed, promising to recover their lost funds for a fee. 
  • Pump & Dump Scams: Fraudsters hype up a low-value stock to inflate its price (pump). They then sell their shares at the peak (dump), leaving other with losses.  
  • Boiler Room Scam: Teams of scammers set up fake offices (called “boiler rooms”) to contact victims and push fake investments. 
  • Deceptive Engagement Scams: Scammers build trust through fake relationships or communities before asking for money. (Check our other advice pages for more details.) 

Please note, these are only a few examples of the many investment scams that exist. 

 

How Scammers Trick You: 

  • ‘Easy money’ offers: Scammers will promise quick, high returns with little risk. 
  • Limited-time offers: Scammers make people think they need to invest immediately, or they will miss out. 
  • Fake celebrity support: Scammers use fake news and photos to suggest celebrities (like Elon Musk) endorse the scam. 
  • Fake reviews: Scammers put fake reviews of a product or service to make the scam look real. 
  • Real-looking websites, apps and software: These are designed by scammers to look professional and trustworthy. 
  • Complex language: Scammers may use complex financial jargon or misleading language to confuse potential investors and make their scam seem legitimate.  

Tips for keeping your money safe:  

  • ‘Get rich quick’ schemes are scams. And if someone says you can make money or digital coins very fast, it's probably not a real investment scheme. 
  • Ignore unrequested investment offers: These may appear as paid ads, social media posts, or cold calls. 
  • Watch out for fake friend & family messages: If someone you know suddenly messages about an investment, contact them another way, it may be a scam. 
  • Do not download any programs (e.g. AnyDesk) onto your computer, if told to do so by an investor. Remote Desktop Access Scams are extremely common. 
  • Use reputable apps – stick to well-known, trusted cryptocurrency exchanges and secure wallet apps. 
  • Enable two-factor authentication on your investment accounts.  
  • Before you invest, do your homework and ask an expert for advice if you are unsure. 
  • Check whether the investment company is registered: 
  • The Isle of Man Financial Services Authority (FSA) has a searchable list of registered entities on the Island (While crypto-investment firms on the Isle of Man aren’t currently regulated they should be registered with the IoM FSA for anti-money laundering oversight). 

Useful Contacts 

Have you been scammed?  

Call your bank as soon as you can and report it to us. 

Don't feel embarrassed about reporting a scam – scammers are clever and scams can happen to anyone! 

Noticed a scam website or advert? 

If you believe a website or advert is a scam or it’s pretending to be a real company, please let us know by using our form. 

Understanding cryptocurrency 

More information about cryptocurrencies and what to look out for when investing can be found on the Isle of Man FSA website and the ICOs and cryptocurrency: What’s all the fuss about?’ leaflet. 

 

 

Page last reviewed - 05/09/2025.