Pensioners lose their life saving in wine investment scams

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Wine investment scams are being used to target older investors. This wine has not been involved in any scam.
Wine investment scams are being used to target older investors. This wine has not been involved in any scam.

Trading Standards chiefs in Cumbria are warning residents to watch out for bogus investment deals after two Cumbrian pensioners lost thousands of pounds in wine scams.

Investment fraud comes in all sorts of disguises, say experts.

The smooth-talking fraudsters are now targeting the county's growing population over-55s because they are more likely to have money to invest. They may pressure you to make a quick decision or try to make you feel stupid for not taking up their bogus offers.

Common scams seen by Trading Standards are where consumers have invested large amounts of money in wine, pensions, watches and precious metals.

Wine investments scams have seen consumers, conned by fraudsters to invest their savings into a scheme offering a good return.

They then discover that the trader has gone out of business and they have lost everything. Often this is followed by a call from another company connected with the fraudsters, who offer to recover some of their money for a fee - unfortunately this is just another scam.

Low interest rates are driving consumers to seek higher returns by investing in unregulated schemes promising a good deal. However many consumers are unaware that unregulated products bought through an unauthorised firm offer no protection from the Financial Ombudsman Service or Financial Services Compensation Scheme, if things go wrong

Trading Standards is urging retirees to take the following precautions before making investments, in a bid to help combat widespread investment fraud.

· Reject unsolicited contact about investments

· Check the Financial Conduct Authority Warning List

· Get impartial advice

· Do your research and don’t make hasty decisions.

If you are contacted out of the blue about an investment opportunity that sounds too good to be true then it probably is.

Further information on investment scams can be obtained from The Financial Conduct Authority 0800 111 6768 (freephone) or 0300 500 8082 from the UK.

For further advice call he Citizens Advice consumer helpline on 03454 04 05 06 or visit www.adviceguide.org.uk

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