Beware scams in online hunt for decent returns on your money
ONE INVESTOR LOST OVER £210,000...DON’T BECOME ANOTHER VICTIM
IT’S a stark fact of financial life that with interest rates barely above zero, it’s very hard to get a decent return on cash put aside for, say, holidays or a rainy day.
And for scammers, that rings the bell of opportunity, as people increasingly look for new ways to bring in extra money.
According to Derbyshire police, a spike in investment scams over the past year has seen victims lose more than £6 million to fraudsters.
It’s a crime even the most careful investor can fall prey to. Scammers persuade individuals to move money to a fictitious fund on behalf of their business or to pay for a fake investment with the promise of a high return with little to no risk.
Since September 2019, 200 people in Derbyshire have fallen victim to this type of scam, and offences have been steadily rising since the Covid pandemic began.
Reports show that people aged between 20-29 are also becoming more vulnerable to fraudsters, who target them through advertisements or posts on social media.
Scammers lead their victims to professional-looking websites, where they’re persuaded to invest in the bogus schemes or are led to invest in scams relating to cryptocurrencies such as Bitcoin.
With more and more people looking to invest, Derbyshire police have launched a campaign to raise awareness of this type of fraud – and how residents can best protect themselves.
To mark International Fraud Week this week, the force has released a video featuring an actress telling the story of one Derbyshire investor who was tricked out of more than £210,000 (see below). It’s a chilling reminder of the old maxim that if something sounds too good to be true, it probably is.
Cyber protect officer Jodie Nevin said: “With the coronavirus outbreak causing job losses and having a financial impact on incomes and our economy, more people are online looking for ways to make money. Sadly, these factors may leave victims more susceptible to fraudulent investment scams.
“Though these offences are getting harder to spot, there are some tell-tale signs to help protect your hard-earned money.”
The force warns people that if they are contacted out of the blue about an investment opportunity, they should not be rushed into parting with their cash.
The advice is: take time to do your research and seek advice from trusted friends, family members or independent professional advice services before making a significant financial decision.
Remember again the golden rule about financial investments: if something sounds too good to be true, it probably is.
If you think you’ve been a victim of an investment fraud, report it to Action Fraud at www.actionfraud. police.uk or call 0300 123 2040.