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Investment fraud


Investment fraud targets the most vulnerable members of society such as the elderly by using high pressure cold calling techniques. The supposed investment opportunities may range from shares, land, carbon credits, wine and even gold and diamonds, yet they will always be worthless, over-priced or simply non-existent. In the worst cases, victims may find their life savings stolen and their retirement plans ruined.


To recognise an investment fraud, avoid dealing with organisations or individuals who cold call you about investment opportunities. This includes those who may initially approach you via a letter or email. Do not allow a glossy brochure or website to trick you into thinking that you are dealing with a credible company.


How to protect yourself


Even if the caller appears to be a well trained, highly professional sounding salesperson, be aware of closing techniques and high pressure sales tactics. A legitimate company is unlikely to use such tactics or make long and persistent phone calls to get you to invest.


Don’t be rushed into making a commitment. The caller may try to stop you from seeking third party advice by making you sign a confidentiality agreement or they may use objection handling techniques - they will listen, repeat your point back to you, appear to address it, ask if you’ve understood and then redirect the conversation. If you are told that you have already entered into a contract to buy the shares and are obliged to pay, don’t worry - such


contracts are not enforceable under UK law.


Double check that the caller is bona fide


Deal only with financial services firms registered with the Financial Conduct Authority (FCA). Perform an internet search on the company in question and ring the fraud department of your bank to check if there is any negative history. Beware of companies that give only PO Box addresses and mobile contact numbers.


If you have any doubts, call the FCA Consumer Helpline with details, or complete the FCA’s unauthorised firms reporting form online.


Telephone: 0800 111 6768


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