Warning as scam can see money stolen Insta minute

Police alert about bogus investment schemes

POLICE have issued a warning about bogus investment schemes after figures by Action Fraud revealed 164 people had fallen victim to scams on Instagram in June 2020.

Commonly referred to as a “money flipping” service, fraudsters approach (or are approached by) victims via the instant messaging feature of the platform after advertising their service.

They claim to only require an initial investment of a few hundred pounds, which they say will be used to trade on the stock market or to buy and trade foreign currency (Forex) until they have multiplied the investment several times within a matter of days, which is paid to the victim after a small commission is deducted for the service.

In reality, once the initial investment has been transferred the victim is given a series of excuses as to why their money and “profits” cannot be returned unless more money is sent.

Eventually, all contact is severed and the victim is blocked by the suspect.

Victims are usually requested to send the money by bank transfer or through a cryptocurrency platform, which means it is nearly impossible to retrieve. Rebecca Spilane, a fraud vulnerability officer with Leicestershire Police explained how to avoid being conned.

A common tactic used by criminals is to promote “investment” opportunities via social media accounts, promising large returns from a small up-front payment. Never respond to any requests to send money, or have money transferred through your account, by someone you don’t know and trust.

Don’t be rushed into making an investment. Remember, legitimate organisations will never pressure you into making a transaction on the spot.

Speak with a trusted friend or family members, and seek independent professional advice before making significant financial decisions.

Use the Financial Conduct Authority’s (FCA) register to check if the company is 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 if things go wrong and you lose your money.

For more information about how to invest safely, please visit: www.fca.org.uk/scamsmart