What is investment fraud?

Investing in stocks and shares or any other commodity can be a successful way of making money. However, it can also lead to people losing their entire life savings. Criminals will persuade you to invest in all kinds of products. They will offer you high rates of return, particularly over longer periods of time, which often don’t exist.

Common products offered include binary options, virtual currency, carbon credits, wine, rare minerals, gemstones, land, and alternative energy.

Fraudsters are organised and they may have details of previous investments you have made or shares you have purchased. Knowing this information does not mean they are genuine. Criminals may direct you to well-presented websites or send you glossy marketing material. These resources do not prove they are a genuine company. Many fraudulent companies have a polished customer image to cover their illegal activities.

It is relatively easy to register a company with Companies House. This does not confirm or endorse that they can provide genuine investments. Indeed, emerging investment markets may be unregulated, making these open to abuse.

Companies may be registered at prestigious addresses. This does not mean they operate from there. It is an accepted business practice to rent a virtual office to enhance a business’s status. However, fraudsters are also aware of this and exploit it.

The fraudster may put pressure on you by offering a ‘once in a lifetime opportunity’ or claim the deal must be done quickly to maximise profit. In addition – be wary of companies that offer to ‘recover’ any funds you have lost to any sort of investment fraud. They may be linked to the company who initially defrauded you in the first place and may be targeting you again. This is called ‘Recovery Fraud’.

There’s no such thing as a ‘guaranteed risk-free’ investment. High returns can only be achieved with high risk. 

Stay safe: 

#LincolnshireAgainstFraud – joining forces to help protect people in our county.