Investment Scam Recovery - Get Your Money Back

Complete guide to recovering investment scam losses. FCA register verification, FSCS protection (£85k), Section 138D claims, crypto scam recovery, court clawback, and how to identify unauthorised firms.

Quick Answer

If you were scammed by a fake investment firm, you have multiple recovery routes. Check if the firm is authorised on the FCA register (fca.org.uk) - if not, you may be covered by the Financial Services Compensation Scheme (FSCS) up to £85,000. For losses above that, file a Section 138D claim against any firm that breached FCA rules. Report to Action Fraud immediately. Recovery is slow but possible; clawback through courts can recover money from scammers' assets, especially cryptocurrency accounts.

How to Recover from Investment Scam

1

Verify the Firm's Status on FCA Register

Visit fca.org.uk/register and search the firm's name. If not on the register (or on the "Warnings" list), it's unauthorised. Take screenshots of the register showing unauthorised status. This is crucial evidence for FSCS claims and Section 138D cases.

2

Report to Action Fraud (Police)

File a report at actionfraud.police.uk or call 0300 123 2040. Provide: firm details, website, email addresses, phone numbers, dates and amounts of payments, payment methods, all correspondence and website screenshots. Action Fraud feeds into the National Fraud Intelligence Bureau for investigation.

3

File FSCS or Section 138D Claim

If the firm is unauthorised, claim via FSCS (fscs.org.uk). You're covered up to £85,000. If authorised but breached FCA rules, file a Section 138D claim against the firm. Provide: proof of payments, communications, scam evidence, FCA register confirmation, Action Fraud reference number.

4

Pursue Court Clawback or Settlement Negotiations

With the scam confirmed, pursue civil court action to recover funds from the scammer's bank account or assets (especially cryptocurrency). Many scammers operate from overseas but receive payments into UK bank accounts - these can be frozen and returned to victims by court order.

What the Law Says

Financial Services and Markets Act 2000, s.19 - Authorisation Requirement
Only FCA-authorised firms can provide investment services in the UK. Operating without authorisation is a criminal offence. Unauthorised firms' victims are covered by the FSCS for claims up to £85,000.
FSCS (Financial Services Compensation Scheme)
Covers consumers' losses from unauthorised firms or authorised firms in default. Provides up to £85,000 per claim. Coverage applies to investments, mortgages, insurance, and payment services.
Financial Services and Markets Act 2000, s.138D - Breach of Duty
Consumers harmed by an authorised firm's breach of FCA rules can claim compensation directly from the firm. Must prove: breach of duty, causation, and loss. No cap on damages.
Fraud Act 2006 - Investment Fraud Prosecution
Investment scams are fraudulent deception (s.2) or obtaining services by deception. Police can investigate and prosecute. Proceeds from fraud can be recovered through Proceeds of Crime Act confiscation orders.

Common Investment Scam Scenarios

Forex or Stock Trading Scam

Fake forex or stock trading platform promises high returns. You deposit money, see fake profits on a dashboard, then cannot withdraw. The firm is unauthorised. Claim via FSCS up to £85,000. Report to Action Fraud.

Cryptocurrency Investment Scam

Promised crypto "mining" or staking returns with guaranteed profits. You transferred funds to a scammer's crypto wallet. FSCS covers crypto investment losses if the firm was unauthorised. Funds may be recoverable via blockchain analysis and court order.

Pension Cold Call Scam

Called about unlocking your pension early (illegal), promised high returns, asked for transfer. The firm was unauthorised. Claim via FSCS and Section 138D. Pension transfers can be reversed - contact your actual pension provider.

Property Investment Scheme Scam

Promised overseas property investment with guaranteed rental returns. No actual property exists. The firm is unauthorised. FSCS covers up to £85,000. Report to Action Fraud and the local authority.

Authorised Firm Acting Fraudulently

An authorised firm (found on FCA register) misled you about investments, failed to disclose risks, or made unsuitable recommendations. Cannot claim via FSCS but can pursue Section 138D claim for breach of FCA rules (no compensation cap).

Binary Options or Spread Betting Scam

Fake binary options or spread betting platform. You deposited money and lost it. If the firm is unauthorised, claim via FSCS (£85k cap). If authorised, claim for mis-selling under FCA rules via Section 138D.

Frequently Asked Questions

What's the difference between FSCS and Section 138D claims? +
FSCS covers consumers harmed by unauthorised firms (up to £85,000). Section 138D allows consumers to claim against an authorised firm for breaching FCA rules (no cap). If a firm is unauthorised, use FSCS. If authorised but mis-sold or defrauded you, use Section 138D.
Can I recover more than £85,000 if the firm was unauthorised? +
FSCS covers up to £85,000 per claim. For amounts above that, you can pursue civil court action against the scammer personally to recover additional funds from their assets. Success depends on locating the scammer and their assets.
How long does FSCS take to pay claims? +
FSCS typically pays valid claims within 20 working days. They'll assess your claim and either approve it (and pay) or reject it with reasons. Section 138D claims against authorised firms can take months to resolve and may require legal representation.
Can fake websites and domain spoofing affect my FSCS claim? +
No. Even if the fake firm's website mimicked a real authorised firm's domain, FSCS still covers you. Scammers often spoof legitimate firms (e.g., adding an extra letter to the domain). Your claim is valid as long as the actual firm you dealt with was unauthorised.
What if the scammer is overseas? +
FSCS covers you regardless of the scammer's location. However, for amounts above £85,000 and civil court clawback, pursuing an overseas scammer is difficult. Many scammers use UK bank accounts as intermediaries - these can be frozen and returned to you by court order.
How do I recover cryptocurrency sent to a scammer? +
Cryptocurrency is mostly irreversible once sent. However, blockchain analysis can trace the scammer's wallet. If they convert to fiat and deposit into a UK bank account, that account can be frozen and returned to you by court order. File FSCS claim for the initial investment amount, and pursue separate civil action for the crypto wallet if located.

Start Your Investment Scam Recovery

Use FightingBack's ScamRecover tool to document your case and file claims with FSCS or pursue Section 138D action.

Start Your Recovery Claim