Ways to protect yourself from “borrowed authority” investment scams

Investment scams and fraud are becoming increasingly sophisticated as advanced technology enables fraudsters to make themselves appear credible. 

This means that scams can be much harder to spot. Intelligent individuals with a strong knowledge of financial matters can still be easily drawn in. 

With this in mind, we wanted to tell you about the latest investment site scam which is doing the rounds and help you to avoid falling foul of it. 

Investment fraud is increasing rapidly, aided by advances in technology

Incidence of fraud is rapidly on the rise. According to the UK Finance Fraud Report 2026, £221.5 million was lost to investment fraud in 2025, an increase of 40% from 2024. The number of cases was 14,893, a rise of 26% since the previous year. 

The report also highlights that criminals are increasingly using a combination of AI technologies and social engineering to manipulate even the most security-conscious individuals into thinking they are genuine.

“Borrowed authority scams” are a prime example of this.

A borrowed authority scam uses public figures to push you towards fraudulent investments

Borrowed authority scams are highly sophisticated, placing a seemingly genuine news story in social media feeds, using a famous public figure to add credibility. 

In a recent example, a fake article from “the Guardian” was used, supposedly featuring an argument between businessman Sir Jim Ratcliffe and BBC presenter Laura Kuenssberg, which it also stated had been removed from BBC iPlayer and all BBC websites. 

The article also then goes on to detail an online investment platform Ratcliffe has been using to make money. There’s then a link, which takes users through to a clone of the real website, which asks you for personal details. If you input these, you’ll be contacted by the fraudster to ask you to sign up to another investment site. 

The fake article was shared on Facebook. According to Full Fact, its investigation found that the whole story was fabricated. Ratcliffe had never been interviewed by Kuenssberg, and the links were not associated with the newspaper’s real web address. They also discovered that the images used on the fake article were created using AI. 

This type of scam can appear very convincing, using the correct logos, colours, names and layouts you would associate with the real website. As AI becomes ever-more advanced, the traditional tells of bad spelling and odd-looking logos can become less useful as red flags. 

Once fraudsters have collected your personal details, it makes it much easier for them to contact you and build a rapport before directing you towards the fraudulent investment website. 

This type of scam relies on the concept of borrowed authority, using public figures and well-known names to add credibility and endorse the investment site. 

Being extra vigilant and taking some sensible precautions could help you to avoid borrowed authority scams

Double-check the web address

The Full Fact investigation also found that the web links were completely unrelated to the Guardian’s real address. So anyone clicking on the Facebook article would be directed to an apparent page from the Guardian, but the actual URL wasn’t correct. 

If in doubt, check the URL at the top of any article you click through to from social media. If you’re on your phone, this may appear shortened, so you might need to tap the address bar to see it in full. 

Alternatively, rather than clicking on an article that you’re interested in reading, go to the publication itself and search for the piece. 

Search for the story

Something like a billionaire finding a secret investment opportunity that generates a fortune is a big story. It’s unlikely it would appear in isolation in one publication, so search for the story or the headline to see if you can find it elsewhere. 

Research the investment firm

Many credible news sites will report on investment stories. However, they will rarely promote investment companies in this way (the Guardian specifically doesn’t). 

Rather than following a link, you can check with the Financial Conduct Authority (FCA) to see if the investment firm is genuine. 

The Financial Services Register lists all firms and individuals involved with regulated activities. Using the details directly from the register can also help you to be sure you’re contacting the genuine company. 

Be wary of phone calls

If you enter your details and receive an immediate phone call, this is a warning sign in itself. You should also be wary if the caller: 

• • Promises unusually high or guaranteed returns
  • Pressures you to act immediately
  • Asks you to transfer money
  • Encourages you to invest more after your initial payment
  • Advises you not to discuss the investment with family or your financial adviser.

Read more: The 3 stages of a real-life scam, and how to avoid falling victim

Get in touch

It’s always a good idea to do your due diligence before making any kind of investment decisions. 

We’d always encourage you to speak to us before acting on any investment opportunity and we can help you to understand if it is genuine. 

Please email us at info@harperlees.co.uk or call 01277 350560 to find out more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.