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Investment scam, bogus internet warning and illegal PPI claims scam

Trading Standards, Warwickshire

  • Incident number: Various
  • Date: 27/03/2018

Investment scam: Warwickshire consumers are warned to beware of unexpected phone calls from bogus share dealers. One resident reported receiving a phone call and being offered an investment opportunity. He was directed to a website where he invested £1000. His investment appeared to be doing well and he was later able to withdraw some 'profits'.  The resident was then encouraged to make a significantly higher investment after which the 'investment' company disappeared and their website shut down. The resident lost his money.

In reality, there will not have been any investment gains. Fraudsters use small amounts of money obtained dishonestly to pay out to victims to make their investments appear genuine and worthwhile. The fraudsters hope that the investors will then invest a significantly higher amount. When this happens, the fraudsters close down their operation and disappear, setting up later as a new enterprise with a new website.

Protect yourself from share dealer scams. Advice from the Financial Conduct Authority

Bogus internet warning: A number of residents have reported receiving phone calls, some of which have been automated, stating that their Internet connection is compromised and if they are not willing to speak to a 'technician' their Internet will be cut off. This is an attempt by fraudsters to scare residents in to unnecessarily paying them to 'fix' their Internet connection when in reality there is nothing wrong with it at all. NEVER divulge any personal or financial information to cold callers. ALWAYS put the phone down.

Illegal PPI claims scam: Some Warwickshire residents have reported receiving bogus phone calls from fraudsters claiming that it is now illegal for consumers to apply for PPI compensation themselves, suggesting instead that they must allow the caller to carry out the work on their behalf. This is NOT true! Consumers can apply for PPI compensation themselves if they wish. They can use a PPI claims company but they will normally be charged a percentage of any compensation obtained.

PPI guide from Money Saving Expert