Fake Investor Scams on Email
Scammers email businesses posing as investors or funds, using professional proposals to extract due-diligence fees, sensitive data, or upfront costs.
Part of: Fake Investor Scams
Last reviewed: 1 June 2026
Email lends fake investor scams the formality of a genuine funding process. A polished proposal, term sheet, or expression of interest in a company's inbox can read as a serious approach from a real fund, especially for a business actively seeking capital.
Because legitimate investor outreach and introductions do arrive by email, a fraudulent one blends into normal correspondence. The written, documented nature of the exchange adds an air of credibility that the scammer uses to introduce fees and data requests framed as standard procedure.
How this scam works on Email
The scammer emails a business expressing interest in investing, often attaching a professional-looking proposal or term sheet and referencing a fund with a plausible portfolio. The approach may follow a public funding announcement to appear targeted.
As the supposed deal proceeds, they introduce costs presented as routine: due-diligence fees, legal or escrow charges, or payments to a designated provider they control. They may request sensitive financial details and ownership information under the guise of evaluation, with the promise of capital justifying each step.
Once fees are paid or data is shared, the investment fails to appear and the sender disengages or demands more. The email addresses and any linked entity are often disposable, leaving the business without funding and out of pocket.
Common red flags
- An unsolicited investment proposal from an unverifiable fund
- A requirement to pay fees to receive the promised investment
- Requests for sensitive financial or ownership data early on
- A sender domain or fund that cannot be independently confirmed
- Pressure to act before a funding deadline supposedly passes
- Payments directed to a specific provider chosen by the investor
How to protect yourself
- Verify the investor and fund through independent, official sources
- Refuse to pay any fee in order to receive investment
- Confirm the sender's role through the fund's official channels
- Withhold sensitive financial data until the investor is verified
- Consult a qualified adviser before paying any process cost
- Treat funding deadlines and urgency as warning signs
How to report it
- Report the email to your national cybercrime or fraud reporting centre
- Notify your bank or payment provider if any fee was paid
- Preserve the email and attachments and alert your security team
Frequently asked questions
We've paid the escrow fee requested by email. What should we do now?
Contact your bank or payment provider immediately to ask about recovery options for the payment method used. Report the email to your national cybercrime or fraud centre, preserve all correspondence, and consider consulting a lawyer, especially if sensitive company data was also shared.
Is it normal for a real investor to use a formal-looking term sheet before any face-to-face meeting?
A professional document alone proves nothing, since templates and letterhead are easy to copy or fabricate. Genuine investment processes typically involve verifiable people and phone or video conversations, and a fund you can independently confirm, not just a polished document.
We received an emailed term sheet from an investor asking for escrow fees. Is it real?
Be very cautious. Genuine investors do not require you to pay escrow or due-diligence fees to receive their money. This is a common advance-fee structure. Verify the fund independently and consult a qualified adviser before paying anything.