A recent bond scam was identified by PIMCO, a financial market research firm. It snatched millions of dollars from unsuspecting investors. The crime was committed when interest rates dipped during the COVID-19 crisis, causing people to search for better returns on their investments. Many were looking for “retirement,” “high yield,” or “compare investments.” Some of these people were young couples saving for a new home.
These scams often pose as reputable financial services companies. They often send you a prospectus, or gather your contact details through fake investment comparison websites. Once you have paid the fee, they will try to convince you to transfer money into their bank account. However, there is a high chance that you will lose all the money you transfer. These companies may be offshore, and your money will not be safe. If you’re interested in investing in a new fund, take your time and check out the FCA Warning List to make sure that you’re dealing with a legitimate firm.
Scammers often target investors who are searching for new ways to invest their money. They may offer high returns, but the returns are usually unreal. Also, beware of firms who do not appear on the FCA’s Warning List. Often, share and bond fraud occurs out of the blue, when a broker solicits you with high-pressure sales tactics. Despite the high-risk nature of investing, the potential for losses is high.