Thought PiecesAugust 3 2020

How to be an Investor and Remain Scam Safe

1 min read

Written by Wigmore Firms

Equipped with new technologies, and easily available data, scammers are becoming increasingly hard to spot, and awareness is crucial.

Scammers target individuals who are expected to have money in excess for investment, therefore high net-worth individuals are especially at risk. Investment scammers can appear as legitimate companies with online resources, samples and advisors. It is important to be informed about these risks and the importance of seeking professional and impartial advice before making investment decisions or conducting the necessary checks.

50% of those investing in unregulated goods, such as wine, diamonds or land, via unregulated firms do it without professional advice, and 27% of over 55s scammed were by unregulated products via unregulated firms, which highlights the importance of receiving professional guidance or advice when selecting such investment products.

We suggest some guidelines:

  • Reject unsolicited contacts about investments
  • Check the firm’s legitimate details via online searches
  • Seek impartial and professional advice

However, a family office can help you by constantly vetting, monitoring, and controlling transactions. This constant awareness is crucial, as scam firms often change names and image.

Wider access to resources such as industry experts, and trusted contacts help them to give you the best possibilities when it comes to investing. They can also lift the burden of managing these investments, which in the case of ultra-high net-worth families can prove quite complex, and require high levels of expertise.