Humberside Police issue investment fraud warning after reports of scams in the force area

A part of an ongoing campaign to protect communities from scammers, Humberside Police is warning people of the dangers of investment fraud.

Monday, 30th August 2021, 10:59 am
Ponzi schemes are ‘get rich quick’ scams which pay returns to investors from their own money, or from money paid in by subsequent investors.

There are many different types of investment fraud. They usually involve people being contacted via social media or directly over the phone and being persuaded to invest in a scheme or product.

Often the schemes seem a great way to make your money grow but are actually worthless or do not even exist.

Once the caller has received their payment, they cut all contact and the money is gone.

Tips to avoid fraud include:

Don’t be rushed into making any investment. Always remember that legitimate financial advisers or organisations will never pressure you into investing without the proper time to consider your investment.

Seek advice first – Before you make any significant financial decision, seek professional independent advice or speak with trusted friends and family members.

How can you check if the adviser is legitimate? The Financial Conduct Authority’s (FCA) register will contain a list of all companies that are regulated by the FCA.

If you deal with a firm (or individual) that isn’t regulated, you may not be covered by the Financial Ombudsman Service (FOS) if things go wrong and you lose your money.

Sergeant Ben Robinson, from the force’s Economic Crime Unit, said: “We know people want to make their money work for them and people often look for a quick return on their investment.

“But how can you tell if the person or company you are dealing with are acting in your best interest and will actually invest your money properly?

“How can you know if they are not fraudsters looking to scam you out of your hard-earned money?

“We have received a number of reports of investment scams in our area and I want to warn people to be on their guard and check the legitimacy of the people they are dealing with before they hand over one penny of their money.

“I know there is lots of useful information online but we have gathered some general fraud prevention information together here to hopefully save anyone losing money they think they are investing.

“Remember if something seems too good to be true, it generally is.”

Contact if you think you have been a victim of investment fraud.