Thursday 9 June 2016
I’ve had a letter offering me the opportunity to invest in fine wine. The returns look really good and I’m tempted, but my friend says not to trust a letter in case it’s a scam. How can I tell if it’s genuine?
While there are lots of legitimate investments out there, your friend is right to warn you. Letters and cold-calls from unknown companies can be a scam. Investment opportunities can ask for large sums and you need to be completely confident before you put your money in.
First, do your research on the company. Investigate their website thoroughly and pay attention to where the company is registered. If it’s outside the UK, be on your guard – if it is a con, it will be difficult to get your money back. You could also look for industry bodies that oversee the sector to assist you with investment advice.
Next, check if the offer is realistic. Do some comparisons among similar companies for what the usual return is. If it looks too good to be true, it probably is.
Finally, look out for high-pressure sales tactics. The literature may ask you to contact them by phone. If a salesperson puts pressure on you to complete the deal straight away, or tells you not to tell anyone about it, it could be a scam.
For advice or to report a potential scam, get in touch with the Citizens Advice Consumer Service on 03454 04 05 06.
Look out for our column next week when we focus on financial support if you, or someone you care for, are too ill to work.
The information contained in these articles does not constitute advice. Citizens Advice Exeter and The Express and Echo accept no liability for the information published. Citizens Advice Exeter is unable to respond to individual requests for advice through these columns. Copyright Citizens Advice. For the most up-to-date information, please visit www.citizensadvice.org.uk