The UK fraud and cybercrime reporting agency has noted the re-emergence of investment frauds where an individual is encouraged to invest in the ownership of a race horse.
People are being contacted about “investment opportunities” primarily by post; however, after the fraudsters have received payments, the individual finds they are no longer able to get in contact with the company.
Detective chief inspector Andy Fyfe of the City of London Police said: “With such large amounts of money involved, investment fraud in the horse racing community can leave people without a horse and having experienced a significant financial loss.
“We are urging people to thoroughly check the details of organisations they are dealing with and consider seeking independent advice before going ahead with an investment.”
Protect yourself
The police advised prospective investors to consider the following:
- Investing in a racing horse as part of a syndicate may, in some, instances fall within a collective investment scheme and therefore may be subject to FCA regulation. Consumers are advised to consult FCA guidance.
- Always check that the details of the organisation or company, such as website, address and phone number, are correct – the fraudsters may be masquerading as a legitimate organisation.
- Never respond to unsolicited phone calls – if in doubt, hang up.
- Don’t be fooled by a professional looking website or brochure as the cost of creating a professional website is realtively cheap.
- Consider seeking independent legal and/or financial advice before making an investment.
