Investment Fraud

by David Tamplin on 25 Sep, 2012

With the continuation of the recession and the fractured global economic climate, the sad news is that investment frauds are on the rise throughout the United Kingdom and too the rest of Europe.

But what is Investment Fraud?

Unfortunately there is no set formula as to what investment fraud is as no two cases are the same. They do, however, have one single thing in common; the promise of high returns.

Most investment scams will offer victims rare goods, promising stocks, shares and investments on rare artwork with the opportunity of making high profits upon their sale.

Interestingly, almost all of these will come unsolicited to the victim and may be found via email, letters or even by the telephone or advertisements in a local newspaper.

But how do you spot them?

The risks of all of these frauds are of course very high though they will promise an unrealistic return for the investment. Most of them will typically state that there is no risk involved; these are the words in which you must look out for.

The scammers will claim that they have expertise knowledge into the financial matter in which they are invoking so it is imperative that you look out for these people who will hassle you out of the blue – a trademark of scammers worldwide.

Although there are Fraud Lawyers available from companies such as Richard Nelson – fraud lawyers in Nottingham, it is important to recognise scammers before you need to get to this phase.

What to look out for:

• A tip in the stock exchange which is ‘guaranteed’.
• An offer from persons to buy your own shares at raised prices
• Chance to buy from a company you don’t know
• Opportunity to buy land to be sold at a profit.

An important tactic about catching the scammers out is to question their methods of succeeding the sale or buy. They will be vague about the methods and programmes in which they will use to gain your investment money.

Of course, they will tell you that their methods are a ‘secret’ that is only available to a select few; usually only themselves, and for good reason.

They will also pressure you into making an agreement, stating that time will be limited and that the chance to make money is quickly disappearing. This is a way to pressure you into signing without thinking about the consequences.

For whatever financial decision that you are making, it is vastly important that you take all the available time to ensure that you are making the correct decision for not only your money but also yourself.

Be wary too of offshore companies or ones that are abroad. The majority of the time, these companies will not exist.

What scams are out there today?

One of the many scams that have arisen over the past few years is a wine investment scam which has been tempting people throughout the UK into investing non-existent wine stock.

As wines such as Chateau Lafite Rothschild are rising in price due to demands in Asia, investors across the United Kingdom are being promised fictitious stocks with –as always- high return.

As with anything, do your research, take your time, read the small print (if there is any) and be vigilant!

About the Author

David Tamplin


David Tamplin has been writing for Uk Money Market for 3 years and is the current editor of the site. He has an insurance background and achieved his ACII professional insurance exams in 1993.