WHAT TO LOOK OUT FOR
DON'T CHASE MARKETS
It is a harsh truth, but the most common reason why victims we've met had suffered a scam, was the victim's unrealistic pursuit of high returns.
Please follow the recommendations of your FCA registered IFA.
Crypto is a great example. So many are burned by investing in a product that most Hedge Fund managers avoid.
'My son has made a fortune!' is a common claim. Before you follow their lead, please watch "Bit conned" on Netflix.
Ask yourself if you have you seen the yield actually cashed out or is it just an alleged figure on a screen.
Some Crypto was over 90% down in 2022 and there are 2,500+ different variants. Yet some chase returns on a hunch or maybe a recommendation of family member.
BAD ADVISERS
They are out there, yes. We have heard a few at seminars and they embarrass us all. You get good and bad in all walks of life so please try to remain open-minded.
It doesn't hurt to be cynical, you are right to be suspicious. Please do your homework
Stability is what both we and our clients were looking for. We don't advertise and we don't offer special offer incentives because we are already busy looking after our valued clients. We are proud to have grown our firm organically via referrals and reputation.
DOING NOTHING CAN MEAN BEING SCAMMED
Huge providers & banks have targets to keep your money within their firm. No use in having the front door open if clients walk out the back door.
It was once explained to me by a High St bank that a 'Disturbance sales technique' is a method used to worry clients enough so they'd leave their cash savings with the bank.
'Sludging' is an industry term given to corporate behaviour designed to delay your exit, withdrawal or transfer. Place too many obstacles and the seeds of doubt grow, eventually the client may leave their cash where it is.
Wording is used to imply that they act to protect you from potential scams. Their frontline staff are trained to believe that their firm's offering is the safest environment available for account holders, which all creates sincerity when they speak to the clients. Powerful stuff, but their actions, albeit genuine from the staff, are often not in the client's best interests.
PROPERTY DEALS
A Turkish car park bond really is not a good idea for your personal pension investment. You are a cautious investor, why switch to that? If the returns are 8%pa, great, let someone else enjoy that benefit.
The toxic hotel complex in Costa del Sol that required your SIPP capital was not worth it. We have seen these deals.
We feel these type of investments should be unavailable by mainstream providers, however so long as those providers allow access without redress laid at their door, there will be those that fall prey.
If it's too good to be true, it is.