Scams - Savings and Investment
About Investment Scams
The word "investment" is used in connection
with a wide range of schemes offering income, interest or profit
in return for a financial outlay. It is often sometimes misleading
in order to disguise the true nature of a scheme, eg pyramid schemes,
chain letters or other types of scheme where a return depends on
persuading others people to join.
It is not always understood by potential investors
that there is a wide range of investments which are unregulated,
which means that they are not traded by authorised investment brokers,
who might be expected to operate to professional standards. Nor
are they traded on a regulated exchange, which means that their
current value and prospects for appreciation are difficult or impossible
to assess through any of the normal methods. There is no guarantee
that the market will still be functioning when you come to realise
your investment and almost no chance of any compensation if the
investments have been misrepresented. This all creates opportunities
for the unscrupulous to mislead and trap the unwary.
Investment scams will always try to appear more
attractive than more conventional and regulated investments and
so the return on the outlay is always likely to be exaggerated or
unrealistic. It follows that the essential message which applies
to other scams applies equally to investments - If it looks too
good to be true, it usually is!
of Investment Trusts
provide general financial information, we urge you to consult an
Financial Adviser ( IFA )
before making any important decisions about your finances.