Could you spot a scam?
Blog by Josh Miere
Most people like to think they would recognise a scam if they saw one.
The reality is that scams are becoming increasingly sophisticated, making them harder to spot and more convincing than ever. This year has been our busiest yet for reports involving investment scams and other types of fraud affecting islanders.
As part of World Investor Week, I'm sharing some of the scams we've seen and a few simple ways everyone can better protect themselves.
The good news is that awareness can make a real difference. Many people would now recognise the lottery scams that were common in the 1990s because awareness grew over time and people learned what warning signs to look out for. Our aim is to help islanders build that same level of awareness around today's scams, making it harder for criminals to succeed.
How fraudsters gain your trust
Fraudsters rarely begin by asking for money straight away. Instead, they often spend time building credibility and creating a sense of urgency or excitement. They may impersonate trusted organisations, present seemingly legitimate investment opportunities or use convincing stories designed to persuade people to act quickly.
Understanding how scams work can be one of the best ways to protect yourself. Below are two common examples we have seen in Jersey this year:
1. Investment shares - advance fee fraud
Imagine receiving an unexpected call, email or letter claiming that shares you own, previously owned or do not even recognise have increased significantly in value following a takeover.
The opportunity can appear highly attractive. However, before any money is released, you are told that you must first pay a fee. This could be described as a regulatory charge, legal cost or anti-money laundering fee.
Once the first payment has been made, further fees are requested. The promised money never arrives, and person targeted left significantly out of pocket.
2. Impersonation of your bank
Another common scam involves fraudsters pretending to be from your bank or another trusted financial institution.
These calls often come without warning and create a sense of urgency. You may be told there is suspicious activity on your account or an issue that requires immediate action.
The fraudster then asks for sensitive security details, such as One-Time Passcodes, to access your online bank accounts and steal your money.
What are the warning signs?
While scams can take many forms, there are several common indicators that should raise concern:
- unexpected phone calls, emails or text messages
- requests for security, sensitive or personal information
- spelling mistakes and poor grammar
- pressure to act immediately or with urgency
- asking or telling you to click on a link or download an attachment
- investment promises or offers that seem too good to be true
If something feels unusual, take a step back and assess the situation carefully.
Remember: Stop, Check, Protect
When faced with an unexpected approach, remember these three simple steps:
STOP – pause before responding to unexpected calls, messages, or adverts, especially if you are being asked to act quickly.
CHECK – confirm who you are speaking to. Use contact details from an official website or bank card.
PROTECT – never share personal or financial information with someone you do not know. Even if they claim to be your bank or financial institution.
What can you do?
If you are uncertain about an investment or feel something isn’t quite right, there are steps you can take to protect yourself:
- check the Jersey Financial Services Commission (JFSC) register of regulated entities to confirm whether a firm is authorised to operate in Jersey (although always be mindful fraudsters may impersonate genuine regulated entities)
- speak to someone you trust
- review our public warnings – we often publish alerts about known scams and unauthorised firms on our website
- contact us directly – our team is here to help and will treat your concerns confidentially. You can reach us on 01534 822000 or email our Enforcement team
You do not need to be certain that something is a scam before getting in touch. If you have doubts, we encourage you to contact us.