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Common types of investment fraud
15 Jan 2021

During this time of upheaval and uncertainty people, more than ever, need to be wary about those criminals after their well-earned cash. But there is help at hand with our fraud solicitor.

Here are a few of the types of scams our solicitors for fraud commonly come across at ABV Solicitors, equipping you with the information needed to protect yourself and your assets.

Carbon credit fraud

This fraud rests on half-truths and a lack of good information by presenting itself as a new commodity. Investors are often cold-called with the ‘opportunity’ to buy carbon credits; a certificate that allows the holder to expel a quarterly usage of 1-10 tonnes of carbon dioxide into the atmosphere.

Carbon credit schemes do exist across Europe but are voluntary. These certificates are  ‘certified’ by businesses outside the UK, with no government backing and are almost impossible to resell. Carbon credit trading is not regulated by the Financial Conduct Authority and there is no option to be refunded by any financial services compensation scheme. If you are considering making a sizable investment, our fraud solicitors at ABV Solicitors can direct you to a reputable, fully licensed broker.

Land banking fraud

Land banking scams use land development opportunities to attract investors in and involve buying real estate land deeds. But the value of these deeds is misrepresented. The ploy is to offer investors land close to a city, seemingly ripe for development, but without building permits. Therefore, it can be bought inexpensively. Once building permits are granted, the value will rise dramatically and you will be able to liquidate the asset.

The catch is that the chance of building permission being granted is almost none and the price being quoted is many times what the land is worth with no development potential, it relies on the investor not understanding local planning laws. If this happens to you, contact our fraud solicitor.

Advance fee fraud

Give me a pound today and I’ll give you much more tomorrow. This is usually easily spotted but the advance fee method can be for any service and not just applying to your wallet. For instance you could buy a contract for emergency plumbing and when the emergency comes there is no plumber.

Simply, it is based on paying now for something of greater value later, but later never comes. Our fraud solicitor can help in recovering lost assets both of time and money.

Diamond mining and investment frauds

Diamonds are a very specialist industry; the losses can be steep and fraudsters use the complexity to their advantage. Diamond mining is based around buying future output from the mine. You are purchasing diamonds that have yet to be found and the scam presents as a way to protect yourself financially in tough economic times. The diamonds in question are unlikely to exist, making your shares of them irrelevant.

Rare earth metals fraud

Sharing many of the same issues as diamonds, but with a more futuristic feel, the pressure to buy is ramped up by suggesting that output in China is slowing, or the prices are set to sore. But rare earth metals are traded privately so without data from a public exchange, it is difficult to tell what the current price is or to predict how it may move.

What can a fraud solicitor do to help?

Investment fraud- exploitation of investors