Investment Scams: How to Recognise Them and What to Do If You’re a Victim

There’s an old adage that says if something seems too good to be true, it probably is. It’s important to keep this saying in mind when a person or entity presents us with an investment opportunity. While we’d all like to invest $1,000 and receive $2,000 or $3,000 in a year, we must be aware that a return of 100 percent or 200 percent is probably unrealistic.

One of the most obvious red flags when it comes to investment scams is the promise of high returns with little to no risk. However, there are other ways in which scammers can try to rob us of our hard-earned cash.

Inspector Dudley Walrond of the Barbados Police Service’s (BPS) Financial Crimes Investigation Unit said many of the reports the BPS receives are of “opportunistic” scams.

For example, some Barbadians receive communication stating they are the grand prize winner of a lottery and they need to send money in order to collect their winnings.

Or, someone may tell them: “I have had an inheritance and I need some money to get this inheritance sent into Barbados. If you assist me with some money I would reimburse you ten-fold.” 

Inspector Walrond also highlighted instances where individuals purporting to be friends or family members contact elderly people and say they have a container at the port and they need funds to pay a broker to clear the container. They tell their victims they’re overseas and they will reimburse them when they return to the island.

Inspector Walrond urged residents to do their due diligence.

“Don’t just accept what being offered to you at face value. Always look a little deeper into it, and if it seems too good to be true, maybe it is too good to be true. Sometimes you need to maybe ask a friend, ‘have you ever heard of this?’ Or do some searching online to see if it is really and truly something that is legitimate,” he advised.

Inspector Walrond also recommended that individuals consult professionals in the investment field for advice.

Scammers can target anyone even though their methods may vary depending on the target. However, you can protect yourself and your hard-earned money by remaining vigilant and doing your research. If you believe you’ve fallen victim to an investment scam, report it to the nearest police station or the Financial Crimes investigation Unit at 430-7195/96.

According to Inspector Walrond, the information that would be most useful to the police includes a receipt confirming the payment you made, a portfolio containing details of the investment, and any bank statements showing that you transferred money to or received money from a potential scammer.

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