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Biggest investment frauds

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Even the savviest of investors have fallen prey to the biggest investment frauds.

Back in 2016 it was found that around nine in 10 people failed a fraud test, despite believing they couldn’t be fooled. This is a troubling statistic.

Many people across the UK are still being duped by scams, leading to millions being lost each year.

However, investment fraud isn’t new. We take a look at a few of the biggest investment frauds of all time.

Storage Pod Investment Scam

A recent storage investment scheme was investigated by the Serious Fraud Office. It had a reported £120 million worth of investment. It is thought that many have lost savings in the scheme, which offered huge returns.

One person involved in the scheme is said to have lost around £370,000.

The scheme itself offered the opportunity to invest in storage units in the North West of England. Some were said to be going for as much as £30,000, while the investments promised as much as a 14% annual return.

It’s also thought that a further 1,000 people have also been duped by the scheme. While the SFO continue to investigate, the extent of the damage is yet to be fully uncovered.

Airport Parking

Back in 2015 the National Fraud Intelligence Bureau issued a warning about a potential scam. This involved people being offered schemes regarding airport parking spaces, and spaces close to major airports within the UK. These investment opportunities were all unregulated.

It came to the attention of the NFIB after members of the public made complaints in regards to phone calls from pushy and forceful sales people, offering investment opportunities in car parking spaces.

It was therefore advised that consumers should proceed with caution as some initial payouts were provided. This however was the result of a new cash investments rather than returns, similar to a Ponzi Scheme.

These are only three major cases in recent years and as you can see investment scams are happening every day, usually in the confines of the four walls we call home.

Not So Perfect Day

Back in 2005, a number of people were affected by a foreign property scam involving financial advisers Perfect Day.

One investor said they had placed a £5,000 deposit on an off-plan, one-bedroom flat in Tallinn, Estonia.

Although the investor and others had been told that they’d be able to double their money, after two years there hadn’t been any progress. Once investors became suspicious and began to explore further, they discovered the police had been involved and the Estonian developer had run off with the money.

The investment was a total scam, and the financial advisers filled for bankruptcy shortly after.

These are only three cases in recent years. Major investment scams like these are happening every day to people across the country.

If you feel you’ve had a bad investment experience, been mis-sold a pension or received bad advice then get in touch with our experienced legal team today. We are currently taking providers to court over some of the biggest investment frauds.