What is it?
You are persuaded to move money to a fictitious fund on behalf of your business or to pay for a fake investment with the promise of a high return with little to no risk.
Your business may be targeted via cold callers pressuring you to act quickly, claiming the opportunity presented is time limited. Criminals will find out as much information as possible about your business and may provide details of previous business investments or shares held.
How to spot an investment scam
- Your business is contacted out of the blue by phone, email or social media platform about an investment opportunity
- You are pressurised into making a decision with no time to consider the investment or do any research into the organisation providing you with the offer
- You are offered a high return on your investment with what appears to be little to no risk
- You are told the investment opportunity is exclusive to you and your business
Examples of an investment scam
Brian* was searching for ways to raise capital for his new business. He’d searched online and filled in a couple of forms for different organisations asking before them to contact him. When he received a call from a broker offering him an exclusive investment opportunity, guaranteed to make quick and high returns, he was really pleased. The caller assured him the investment was safe and directed him to a seemingly genuine website where he could find out more information. Brian agreed to invest a large proportion of the business’s profits, not realising that the money he was transferring was instead going straight into the hands of criminals.
*Case studies are based on insights from partners