Investment fraud

As traditional investments become less popular due to lower returns, high yield investments have become more attractive to fraudsters. High yield investments are generally considered to include shares, undeveloped land, wine and collectables such as art or classic cars.  The average victim of an investment scam loses £20,000.  See the guides below to popular investment frauds.

It is impossible to describe how each scheme works as the only boundaries that are known are the scope and depth of the fraudster’s imagination. Some examples are:

  • Share purchase known as Boiler Room where a fake company offers a unique guaranteed opportunity.
  • Undeveloped land sold in small plots on the premise of gaining planning permission for housing.
  • Wine investment sold later for a large tax free profit.
  • Banks from remote areas of the world offering Bank Guarantees for hundred's of millions of dollars

Investing in fine wine

Fine wines can make a good, relatively low risk long-term investment. However as with all types of business, there are rogue wine traders.

Boiler room

Fraudsters will normally cold call you normally by telephone and try to sell you share investments that will supposedly lead to huge financial returns.

Carbon credits

A carbon credit is a certificate or permit which represents the right to emit one tonne of carbon dioxide (CO2) and they can be traded for money.

Diamonds and precious stones

Diamonds and other precious materials such as gold hold their value and in recent years their prices as commodities have risen experientially.