25 May 2023

Don’t fall for investment scams

Quick Update | A collection of news in brief from Investec Private Banking

We have noticed an increase in online investment scams that target Investec clients with joint UK and South African accounts.

You may be contacted by telephone or email or you might even find these ‘investment opportunities’ yourself through fake websites.

The offer will often only be available for a short period of time. It will promise better returns than any other wealth manager in the market.

These fraudsters may send an unsolicited email with PDF attachments. The attachments outline what appears to be an attractive investment offer (such as a fixed rate bond from a financial institution like Investec).

The emails tend to include official-looking documents, such as Investec’s financials and a document pack from the Financial Services Compensation Scheme (FCSA) to lend it a feeling of authenticity.

The fraudster may also pretend to represent an established wealth manager, but will ask that you only contact them on a personal email address or telephone number. Once you transfer funds over, they will disappear with the money.

If you receive a direct unsolicited approach to a so-called investment opportunity, then call your banker on a number you know and validate the authenticity of the investment.

How you can protect yourself

1. Consider how you are contacted

The truth is that legitimate financial institutions and investment
companies will rarely contact you out of the blue. If you have been contacted in this way, it is likely to be a fraudster at work.

2. Always call back to check the validity of the offer.

Don’t call back on a number you have been given by the person you’re
speaking to (either by email or phone). Only call back on a trusted number that you have sourced independently. Visit Financial Conduct Authority’s (FCA) Financial Services Register and the organisation’s list of warnings from international regulators.

3. Brand cloning or impersonation fraud is increasingly common.

If you have been contacted by email, pay attention to the sender’s email address or domain. For example, Investec does not use the domain investec-uk.com, but scammers do. Before making any kind of investment, check the FCA Warning List and its list of warnings from international regulators.

4. It is better to take your time and be safe

True investment opportunities will usually be accessible for longer than a few hours or days. It is better to ensure this is an authentic opportunity. If you’re being pressured to invest now because the opportunity won’t be available for long, try telling the person you’re speaking to that you’re comfortable to miss out, if that’s the price of verifying that the investment
is genuine.