Internet and online scams

As mentioned, there are different types of online trading scams targeted towards traders and investors. One of the most common, yet easily disguised scams, is pump and dump fraud. This is where scammers disguise themselves as influencers or investors to create hype around stock or crypto, leading more people to invest in it and causing the value to increase. Once this happens, the scammers will then sell their shares, earning large amounts of money and leaving the rest of the investors with little to no returns once the stock inevitably plummets. 

Affinity fraud is a form of online scam which targets people within certain demographics in an attempt to try and persuade them to be part of a pyramid or Ponzi scheme. Scammers will often target religious groups, with the promise of high returns from little investment. Due to the nature of affinity fraud and the demographics targeted, victims will often try to sort the repercussions out themselves when they realise they’ve been scammed, rather than reaching out for legal assistance. This is where we can help.

There are numerous types of pension scams, however, online scams are becoming increasingly more common as more and more people take to the internet looking to combine different pension schemes or manage their pension funds more closely or efficiently. Pension scammers will often appear very knowledgeable on the topic and will refer people to credible sites, such as HMRC or government-recommended schemes. Once they have your trust, they will try to persuade you to transfer your pension to them as an investment opportunity where, more often than not, all money transferred will be stolen outright.

Another common trading and online scam are binary option scams. Binary option – a form of trading – is one which itself is relatively high risk and as a result, brings with it additional risks in the form of advanced scams. Binary option scammers will often present themselves as being legitimate investors and will work to gain your trust, although it is currently illegal for investment brokers to offer binary option investments in the UK, which results in a lot of these scammers operating off-shore, meaning that when your money is lost, it can be harder to trace.

We’re experienced in recovering the lost funds of investors who have fallen victim to land banking fraud. Although a scam which was more prevalent around 10 years ago, with more people investing in land and property as a way of diversifying their investment portfolio, we continue to see people who have fallen victim to this type of scam. With land banking scams not regulated by the FCA, it can be difficult to access support from the financial ombudsman, which is where we can provide our expertise. 

Advanced fee fraud is a method popular with online scammers in order to target victims who are responding to advertisements for things such as jobs, competitions or rental opportunities. Scammers will impersonate legitimate businesses and purposefully target victims who may have poor credit history or are less financially secure, as they will be approved for whatever it is they apply for. Before victims receive the loan, product or service which they have applied for, the scammers will ask for an upfront fee payment, which is where the name of the scam comes from. 

Known for being particularly high pressure, boiler room fraud is a type of online and trading scam which is targeted towards investors and traders. Although not as common as other trading scams, boiler room fraud does still occur with scammers looking to get traders and investors to deal in worthless or non-existent shares. This type of scam gets its name from the high pressure and constant sales tactics used by scam brokers.

Phishing scams are a type of scam where criminals impersonate a trusted person or legitimate company through text, email, advertisement or other means to steal sensitive information or funds. Perhaps one of the oldest, and most common, internet scam, phishing scams can affect anyone and any business. 

The rise in online dating platforms has brought with it an increase in the number of romance fraud cases. Romance fraud can be hugely devastating and emotional for the victim involved and in a lot of cases, involves the loss of large sums of money. However, as the transactions used typically involve bank transfers, this means that it can be traced and we can look to recover your lost funds.

Spoofing scams and fraud cases are on the rise and we’re seeing more and more clients come to us who have lost money through spoofing scams. Spoofing fraud is where a criminal will disguise themselves behind an email address, false website, display name, phone number or text message in an attempt to convince victims that they are interacting with a trusted and known source.

Impersonation scams share signs with many other investment scams, but they are amongst the most common. This scam involves the impersonation of a government body, bank, delivery or utility company, or other organisations and trusted people who then demand payment from you.

Bank fraud is a major problem which can cause serious financial loss for those affected. It is a serious crime and one which can take and include numerous different forms, from impersonation scams and identity theft to phishing scams and authorised payment fraud.

Purchase scams are a growing form of online fraud and typically typically involve victims knowingly transferring funds from their UK-based bank account to a fraudulent app or via bank transfer, in the belief that they are making a legitimate purchase.

Investment scams can take on many forms, often disguised in a way to dupe the investor into making large or unusual investments. Scammers will impersonate trusted figures such as a regulated broker, financial advisor, fund manager, or investment service provider and can even use professional looking adverts and websites in an attempt to validate their authority.

AI scams are on the rise and, in line with the growing improvement in AI technology, they’re set to become more common and more enhanced. 

Ponzi fraud is a very fraudulent type of investment and trading scam. Traditionally, this was a scam done in person, but with the prevalence of social media and forums, it has become a common form of online scam, too. With the promise of large returns, Ponzi fraud operates by redistribution of the funds that were initially invested, so there is never actually new wealth being generated. Ponzi and pyramid schemes almost always fail, leaving investors with no funds and scammers with everyone’s investments.