Seven Signs of An Investment Scan

At a time of high inflation and poor rewards for savers, there's a growing risk of being lured by the promise of high or guaranteed investment returns. It's not always easy to tell the difference between a high-risk (but legitimate) scheme and an outright scam, and sometimes the truth only emerges years later. Ask yourself:

1. Are they authorised? If a firm is dealing in stocks and shares but is not authorised by the FSA, it's likely to be fraudulent. More 'exotic' investments such as cryptocurrency, whiskey, property and art are not regulated by the FCA, meaning there's no recourse if something goes wrong. They are extremely risky even if they are not always fraudulent.

2. Are you being pressured? If your investment 'adviser' is telling you that you need to send money within hours or days or the 'deal' will vanish, it is certainly unethical and may well be a scam.

3. Have you been asked to keep it quiet? A respectable organisation would never mind you pausing the conversation to seek a second opinion and conduct further research.

4. Have they promised huge returns? Investments are by their nature risky, and can go down as well as up. Any promotional brochures that promise returns in double figures, or imply that the scheme cannot fail, should be regarded with suspicion.

5. Were contacted out of the blue? A successful, professional firm won't need to contact you without your permission with a cold call, email or text.

6. Did you follow a lead on social media? Facebook and other platforms are used by investment fraudsters to promote their schemes. This can be through paidfor advertising but also through fake profiles which show a bogus millionaire lifestyle featuring expensive cars, holidays and designer clothing. The fake profiles attempt to engage with victims by promising to share the 'secret' of their wealth.

7. Is there an element of romance involved? Contact is made via a dating platform or via a message from a charming stranger who claims to have got the wrong number. After weeks or months of grooming and 'lovebombing' their victim, the fraudster claims to have had some success with investing - typically in cryptocurrency or property - before offering to invest some of the victim's funds. The victim will lose not only their money but also their new 'partner'.

If you think you have fallen victim to a scam, report the scam to Action Fraud online or on 0300 123 2040. If you're not sure whether something is a scam, you can talk to one of the trusted contacts in Meldreth: Graham on (01763) 260358, Linda on (01763) 261405, Peter on (01763) 260323 or Tim on (01763) 262801.

You can contact Neighbourhood Watch by telephoning Graham on the above number, or by emailing nhw.meldreth@btinternet.com.

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