Sadly, once ‎fallen victim to an investment scam you are increasingly vulnerable to other investment scams, follow-up scams and recovery room fraud.

Why so? The perpetrators of these scams are in possession of your details. Until they are stopped in their tracks your details will continue to be shared and re-used.

Once they have taken an initial investment from you, it won't necessarily stop there. They will stop at nothing if they think they can get you to part with your money. Investments in carbon credits and rare earth metals, for example, require an exit route in order for you to make money on your investment (although remember the investments will have been sold to you at highly inflated prices and the promoted return on investment will have been overstated too).

The next step of the scam will be to help recover your investment (the exit route). Upfront payments will be required to help release/sell your investment, but you will see nothing for your payment.

Regrettably, even when ‎scams undertaken by corporate entities are identified, investigated and wound-up in the public interest, fraudsters still see opportunities. For example, they may try to impersonate the liquidators or say they represent the liquidators and seek upfront payment (plus tax) from you to either sell or release and return your investment to you. But this should not deter you from taking action. 

How do you avoid falling victim?

  • Don’t answer cold calls

  • If it sounds too good to be true it probably is

  • Be wary of requests for upfront payments

  • Keep your personal details to yourself

  • Take time to make decisions and research them

The FCA’s boiler room info-graphic is a great illustration of how fraudsters will attempt to reel you in and how you can avoid it.

What do you do if you have fallen victim?

Don’t be ashamed, fraudsters are often intelligent people. The most important thing is to report the scam to help prevent it happening to others and to put a stop to the fraudsters. Always report it to Action Fraud.

If you wish to consider pursuing civil recovery via insolvency procedures for money you have lost to a scam, please contact AssetTracingRecovery@uk.gt.com