Falmouth Packet Business Oct ’17 – Scam smart investor

Are you a Scam Smart Investor?

Most of us think that scams happen to other people, but most scams are extremely clever: deliberately targeting educated people with investment experience, assisted by low interest rates and a desire to attract higher returns

Often operated from the UK and may involve investments in wine, precious stones or carbon. The person making the call may not realise that they are involved in a scam, making them even more persuasive.

In 2016 victims of investment fraud lost on average £32,000 *as fraudsters employed advanced psychological techniques to persuade victims to invest ,such unauthorised firms have no protection from the Financial Ombudsman Service or Financial Services Compensation Scheme.

The initial contact is likely to be a cold call, although often referring to a brochure or an email that they purport to have sent you.

What to look for:

Pressure being applied – limited offer or bonuses before a set date

Downplay the risks to your money and use of legal terms suggesting the investment is very safe.

Promise tempting returns – much better interest rates than those offered elsewhere.

Call you repeatedly and stay on the phone.

Advise the offer is only available to you or even ask you to not tell anyone else about the opportunity.

How to be a Scam Smart investor:

Reject any unsolicited contact about investment opportunities.

Check the FCA Warning List and the Financial Services Register to see if those that are asking for your money are the real deal.

Get impartial advice.

Before you hand over any money, get independent financial advice from someone unconnected to the firm that has approached you, such as an IFA, solicitor or accountant.

Our belief is that you can never be too careful

Find out more at www.fca.org.uk/ScamSmart

* Source: YouGov PLC on behalf of the FCA


This article does not provide individual financial advice and are the views of the columnist only. Vision Independent Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority.

Sarah Williams of W.T. Independent Financial Planning is an Appointed Representative of Vision Independent Financial Planning Ltd

Article October 2017