Scammers are increasingly targeting people with high-interest investment schemes, with the aim of defrauding them. Fake investment comparison websites are often used by fraudsters, gathering personal details from unsuspecting investors. Once the money is invested, the scammers may not only lose the money but may even use it elsewhere. The most common scam involves a website that claims to be affiliated with a well-known financial institution, but is actually a bogus website.

Generally, a bond scam involves the sale of government bonds to individuals. A bogus firm will ask for money upfront and claim they will refund the money if the sale doesn’t go ahead. These companies often use a genuine FCA-authorised firm’s name and address, but provide their own contact details. Beware of high-risk investment schemes, and never invest in them! If you’re unsure whether or not a company is legitimate, it is a good idea to check the FCA’s website and look for the stamp of approval.

ASIC has become aware of a growing number of imposter bond investment schemes targeting investors. Many scammers impersonate reputable financial services firms and promise investors high yield bond investments. The best way to protect yourself from these scammers is to avoid falling for their offers. You’re more likely to fall victim to a scam when an investment is as high-risk as bonds. However, you’ll never know until you try it.