What does prime bank guarantee fraud involve?
Fraudsters invite you to join a scheme that
will make you rich quickly through bank
guarantees. They tell you they can buy the
bank guarantees at a discount and
sell them shortly afterwards at an enormous
premium. By investing a large sum in their scheme, you will make a
big profit.
How do prime bank guarantee fraud affect me?
The fraudsters tell you that you will be part of a group of
extremely rich investors. They may tell you
not to seek professional advice because the
information is reserved only for those taking part in the programme
and the scheme is by invitation only.
The fraudsters may also tell you that you could be
thrown out of the scheme and taken to court if you seek
independent advice. You might be informed that even the wellknown
banks listed on the documents can’t discuss the deal unless you are
a main investor.
The fraudsters will try to make the scheme appear
legal by giving you documents that appear complex,
sophisticated and official. They may falsely tell you all your
funds will be secured by a letter of credit, a bank-endorsed
guarantee or another guaranteed certificate supported by the
world’s major banks. Or they may tell you that the scheme is
risk-free or sanctioned by the International Monetary Fund
(IMF).
However, once you part with your money, it disappears along with
the investment company.
What should I do?
- Be aware that foreign banks do use bank
guarantees, but they are never sold or traded on any kind of
market
- Remember: if something seems too good to be
true, it usually is
- Bear in mind that that there's no such thing as a
high-return, risk-free investment
- Always make sure you fully understand how the
investment works. Challenge what you're told. Investigate
the investment company and its claims. Is it registered in the
country where it claims to be based? Who are the directors? How
exactly does the investment company claim to make its money? Can
you withdraw your money easily and quickly?
- Have everything checked by an independent professional
financial advisor, an accountant or financial advisor.
Take legal documents to a lawyer before signing them
- Do not be pressured into signing a contract at
a presentation
- Make sure you know the legal and tax rules
associated with offshore investments
- Think carefully before investing any of your
money. Make absolutely certain the company you're dealing with is
legitimate.
If you think you have been a victim of a prime bank guarantee
fraud, contact the police and the Financial Services Authority.