Check a broker in 3 steps
- Find it on an official register. In the EU a firm may only offer investment services if a regulator has authorised it. Search the firm's exact name in the ESMA register of authorised firms: it should show as an investment firm with the status "active". Then check your own country's register (links below). Not there means not authorised, and if you deal with it you lose protections such as investor compensation and the financial ombudsman.
- Check the warning lists. Regulators publish names of firms that offer services without authorisation. Search your national regulator's website and IOSCO's I-SCAN, which gathers alerts from regulators around the world.
- Make sure you're talking to the real firm. Scammers use the names of real, authorised firms and copy their websites: a clone firm. Take the website, phone number and email from the register entry or the firm's own official site, contact the firm that way, and compare. Never use the contact details the person who approached you gave you. Look for small differences in the web address and the company name.
One more question, straight from ESMA's advice: ask the person "Are you authorised to sell me this investment product?" If the answer is no, stop there.
National registers (from ESMA's list)
- Germany: BaFin company database
- France: REGAFI register (ACPR)
- Netherlands: AFM registers
- Spain: CNMV entity search
- Italy: CONSOB investment firms
- Romania: ASF public register
- Other EU and EEA countries: the full list is on ESMA's "Is the firm regulated?" page.
The red flags, explained
- High returns with little or no risk
- Real investments that can earn more can also lose more. Regulators list "a promise that seems too good to be true" as the first warning sign.
- Pressure to act now
- Urgency is deliberate: it stops you from checking. A real investment will still be there after you've taken a day to verify the firm.
- Unexpected contact
- Scammers reach people through unexpected calls, social media, messaging apps and emails that sound real.
- A personal "adviser" in a chat app
- A common pattern: a small first deposit that seems to grow, then pressure to add larger sums. When you try to withdraw, the contact stops responding.
- Celebrity or famous-company endorsement
- Scam ads often use real celebrities' photos or AI-made videos (deepfakes) without their permission, and copy the look of news sites.
- Remote access to your device
- Banks and financial firms never ask for remote access or screen sharing. With it, a scammer can see and use your banking apps.
- Unusual ways to pay
- Regulators list payment by hard-to-trace methods (crypto, gift cards, wire transfers, prepaid cards) as a warning sign. Money sent this way is very hard to get back.
- Requests for passwords or codes
- No legitimate firm asks for these by email, text, social media or phone. Anyone who has them can take your money.
- Not on the official register, or details don't match
- Firms must be authorised to offer investment services in the EU. Scammers also copy real firms' names and websites (clone firms), so details that don't match the register are a warning on their own.
- Influencer tips without disclosure
- Promoters should disclose when they're paid, and only authorised people may give personal investment advice. Hidden payment or "buy this now" tips are a reason for extra care.
If you think you've been scammed
- Stop paying and stop all contact. Don't send "one last fee" to unlock a withdrawal. Block the numbers and accounts.
- Call your bank or payment provider now, through the number on your card or their official app, and ask whether the transfers can be stopped or recalled. The sooner, the better.
- Change your passwords on every account and device, and remove any remote-access app the scammers asked you to install.
- Report it to the police and to your national financial regulator. Tell friends and family too: scammers often try the same people's contacts.
- Beware of the second scam. People who were scammed are targeted again by "recovery" services, sometimes posing as the police, a tax authority or a financial regulator, who promise to get your money back for an upfront fee. That's usually the same scam a second time.
Questions
- The firm is on the register. Am I safe?
- It's a good sign, not a guarantee. Clone firms use real firms' names, so check that the website and phone number you're using match the register entry. Authorised firms can still sell you products that don't suit you; the investing basics guide explains costs and risks.
- Is every offer on social media a scam?
- No, but scammers rely on it: fake ads with celebrities, fake "success stories" and private chat groups are common. Influencers who promote financial products should say if they're paid, and only authorised people may give personal investment advice.
- Can I get my money back?
- Sometimes, if your bank acts quickly, but often not, especially for crypto transfers. That's why stopping early and reporting matter, and why anyone promising a guaranteed recovery for a fee is a red flag in itself.
- Does this checker say whether a company is a scam?
- No. It counts common warning signs. A legitimate firm can tick one box, and a scam can avoid all of them. The register and warning-list checks above are what count.