Facebook ads funnel victims to wine investment scams

Social media adverts promised returns of 5%

Online adverts using enticing images of vintage wines are luring potential victims to part with their cash on the promise of unrealistic returns, Belgium’s Financial Services and Markets Authority (FSMA) has warned.

FSMA has recently received several complaints from investors, who were approached by companies offering them the opportunity to invest in the alternative asset class.

This comes a month after International Adviser reported on a survey that found fine wine is a “safer” option among alternative investments.

The regulator said that victims were contacted by a salesperson, who invited them to consult an online trading platform for wine, after they expressed an interest in social media and website adverts.

An unnamed victim said: “I provided my contact information in response to a Facebook ad that offered investments in wine.

“The company then called me, explaining that the market returns for wine were high and that I would be able to achieve at least a 5% return.”

So far, the Belgian regulator has identified five firms involved in such scams.

www.cabinetconseildexpert.com;
www.grandscrus-europe.com;
www.lgc-wine.com;
www.pfm.cabinetconseildexpert.com; and
www.place-aux-vins.com.

Enticing sales pitch

The companies in question said they are “specialists in investment in fine wines” and claim to make investment accessible to everyone.

They offer the opportunity to acquire bottles of wine, store them on behalf of the investor and promise to find buyers to make them a profit.

One of the companies promoting the scam, which was not named, boasted that it “carefully guides its clients in their plan to acquire a wine cellar of fine wines”.

“Its mission is to determine the best time to resell some or all your wine collection.

“As soon as we see an offer on the market that enables us to sell your wine with what we consider an optimal return, we will contact you to suggest that you sell.

“Up to you to decide whether or not to accept the transaction.”