STEER CLEAR OF SCAMMERS

WITH government backing and tax advantages, Isas are regarded as a highly trustworthy investment. But that hasn’t stopped fraudsters trying to cheat unsuspecting savers.

A quick internet search for ‘best Isa rates’ sees dozens of results. But among the respected money advice portals and recognised providers are lesser-known names touting market-beating returns.

One website, near the top of a Google search, claims to list cash Isas offering a guaranteed 8pc annual return. To find out more, visitors must hand over their telephone number and email address.

This is a common technique used by scammers, who then use sophisticated call centre operations to pressure victims. Some try to palm off low-quality investment products, which they falsely claim are regulated by the Financial Conduct Authority (FCA). As these investments don’t qualify for the Financial Services Compensation Scheme, you can lose your cash if they go bust.

Others are simply looking to extract personal details, including passwords and bank accounts, so they can access your accounts elsewhere.

One of the most effective tactics is when scammers try to pass themselves off as legitimate firms. Fraudsters spend time and money building very convincing websites to win victims’ trust. Over the past year, the FCA has issued warnings about 1,000 clone sites, with scammers impersonating Aviva, Fidelity, AJ Bell, Quilter, and Standard Life.

As always, the key to avoid being scammed is to remain vigilant — and remember that, if something sounds too good to be true, it probably is.

An 8pc annual return on a cash Isa is more than seven times the market rate — and sounds highly suspicious.

Before you deal with any investment product, check the firm is on the FCA’s register of regulated companies.

As for avoiding clone firms, the best way is to call the company’s switchboard to check that a product is real.