Wine investment fraud and recovery

The NFIB’s Investment Fraud Team is anticipating that wine investments and wine recovery will become a commodity sold by boiler rooms again after analysing intelligence from several reports.

Recovery Room fraud is a method where criminals contact victims of previous frauds, often by cold calling, and claim to be able to recover previously lost funds for an upfront, advance fee. When Recovery Room fraudsters contact victims of wine investment fraud they will usually claim to be a legal professional such as an insolvency practitioner or a representative of another investment firm.

Last year, victims of investment fraud lost on average £32,000 as fraudsters employed increasingly advanced psychological tactics to persuade victims to invest.

The Financial Conduct Authority (FCA) is urging over 55s to check investment opportunities are genuine before they part with their money. This comes as new research, commissioned as part of the FCA’s ScamSmart campaign, reveals that only 42% of people think they know how to spot a fraudulent investment opportunity.