The rising level of investment scams poses a major threat to the
financial security of many individuals. The speed with which the
fraudsters operate and the methods they employ leaves little time
for the target to question the proposition or recognise that it is
a scam until it is too late.
The target is frequently pre-selected by a series of questions
put to them by the sales staff aimed at establishing whether the
individual, nor anyone close to them, has any prior knowledge of
the type of "investment opportunity" that is being
offered. Once drawn into the scam and persuaded to part with your
money, typically you will be told that your money has been lost,
then scammers use a combination of persuasion and threats to keep
you involved and paying more money into the scam, from offering to
trace "lost" investment money for an up-front fee to
threatening legal action is you stop sending money and want to
There are steps you can take once you recognise that you have
been targeted by scammers which will provide you with evidence and
give you a better chance of recovering your money on two fronts.
First, by persuading the fraudsters that you have a sound case,
with supporting evidence, which will succeed in court. This may, in
turn, convince the broker to refund your money straight away.
Secondly, if it does become necessary to go through the
courts, you will have a strong case.
If you suspect that you have been targeted by a fraudulent
broker take the following action immediately:
Make a clear request for your money
to be returned.
Should the firm fail to refund your
money, cease all contact with the firm.
Do not send any more money to them
regardless of what is said to you.
Keep copies of all correspondence,
emails and text messages.
Keep copies of any loan applications,
credit card applications that the fraudsters may have sent to you
regardless of whether you applied for either type of finance.
Any further attempts to contact you
should be noted by written records of any conversations.
Despite the fact that such sophisticated frauds are rife, it is
not impossible to recover your misappropriated money. There are a
number of avenues to pursue for recovery. The lawyers in
Giambrone's Financial Services, Forex and Binary Options
department have recovered monies in excess of Ł9 million for
our defrauded clients.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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It was back in 1998 that Jack Straw, the then Home Secretary, asked the Law Commission to examine the law on fraud and whether a general offence of fraud would be an improvement to the body of criminal law.
The Fraud Act 2006, which represents the most radical change in the law of criminal fraud since the Theft Act 1968, came into force on January 15, 2007. We are now over a year into the new law, which seems a reasonable juncture to pose the question: has it had any impact?
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