Investment Scams soared in 2020 as fraudsters took advantage of financial uncertainty and coronavirus worries. Financial fraud has shot up during the pandemic. Action fraud has reported that between September 2019 and September 2020 more than 17,000 reports of investment fraud were made to Action Fraud. This involved £657.4m in losses, up 28% on the previous 12 months.
Parking investment scams
The Park First scheme, which collected more than £230m from thousands of people, offered returns of up to 12% to those who invested £20,000 a time on individual parking spaces at Gatwick and Glasgow airports. But it was an “illegal collective investment scheme” that was “promoted to the public using false or misleading statements”.
Pension savers are increasingly being targeted by a scam involving “investment” in parking spaces close to major airports. Pensioners are now more vulnerable than ever following reforms that have given over-55s more choice over how they deploy their pension savings.
Investors may receive a good dividend pay-out from the parking space scheme at first, but there is no guarantee of how long this will last, and no security as the space can be sold on or even that the investment company will disappear.
If you have any concerns our Investment Claims Specialist legal team want to help you!
Our legal team will run a vigorous audit on all of your communications and documents to quickly establish the authenticity of your investment and if you have a potential claim. In most cases even if the company you purchased the investment from has closed in cases of fraud we can pursue the perpetrators personally.
Do you need legal advice?
Contact us for some free advice, let our expert team help you.
In depth assessments
Before any action is taken, the strength and potential of your case, is thoroughly assessed.
Potential Pod Investment Scams
Each victim lost an average of £45,242 in 2020 after investing with fraudsters imitating genuine investment firms. More than £78m was lost in total, according to fraud reporting centre Action Fraud. The UK's first National lockdown reports of clone firm investment scams rising by 29% in April 2020 compared to the previous month.
Scammers set up clone firms using the name, address and firm reference number (FRN) of real companies authorised by the regulator. The ongoing financial impact of Covid-19 has made people more susceptible to scams.
Storage pods are used by people for storing their belongings. You purchase storage pods which are then rented out, you then gain a return on your investment from the pod rental. You may also be told that you may sell your storage pod making a lucrative profit. Investors are told by agency firms that they will receive a guaranteed income on their storage pod.
This is a prime example of a mis-sold investment. Any purchase made based on untrue unproven facts is deemed as mis-selling. Tranquilitas would like to help you through this difficult time, let our legal team help guide you through to gaining justice.
Instagram Investment Scam
Since the coronavirus outbreak began last year, the average number of Instagram frauds reported each month has increased by more than 50%, according to new figures by Action Fraud, the UK police national reporting centre for fraud and cybercrime. There's also been a rise in the reported amount of money lost. Before the pandemic, it averaged £60,000 a month, but it has now risen to about £200,000 a month. In June 2020, Action Fraud received 164 reports from victims of fraudulent investment schemes, commonly referred to as a ‘money flipping’ service offered by users on Instagram. These reports have amounted to a combined financial loss of £358,809.
Fraudsters approach (or are approached by) victims via instant messaging on Instagram after advertising their service. They ask for a small initial investment of a few hundred pounds which they claim will be used to trade on the stock market or to buy and trade foreign currency (Forex). The investment gains a small return several times within a matter of days which is paid to the victim after a small commission is deducted for the service. In reality, once the initial investment has been transferred the victim is given a series of excuses as to why their money and ‘profits’ cannot be returned unless more money is sent. Eventually, all contact is severed and the victim is blocked by the suspect. Victims are usually requested to send the money by bank transfer or through a cryptocurrency platform which means it is nearly impossible to retrieve.
Jonathan Reuben a 24-year accountant, was following a man on Instagram who had a rose gold Maserati, saying that he's rich and self-made and really young, he's was only 21. Jonathan believed in this man so invested £1,000 into a Foreign exchange investment scheme. Jonathan did see a return so invested more and more money in the end he lost £16,000. Jonathan is an accountant you can read all about his story here.
We want to bring as many cases to justice as we can, we care passionately please do reach out to our legal team, we want to help you.
Our team have been hand selected for their case successes against some of the worlds prolific perpetrators of mis-sold investments. We care passionately about our clients. We aggressively pursue every case, whilst reassuring and updating our clients on a monthly basis.