Cannabis Investment Scam Alert – How to identify an investment scam
Cannabis continues its meteoric rise to becoming a tradable commodity since the legalisation for medical and recreational use in Canada and some US states. For example, the likes Canopy Growth Corporation, listed in Toronto, which has gone from $10 a share to $65 in the last two years. However, with Cannabis stocks flying ‘as high as kite’right now it gives fraudsters the opportunity to cash in.
Fraudsters are jumping on the bandwagon and creating websites, apps and social media adverts luring people to invest in scams. One site we have looked at opens with the line “Opportunities like this show once every few decades”. The website in question “Cannabis Investment” also has a video featuring a private jet etc.
Although the website claims the Investor Compensation Fund insures client’s funds, they refer to it as IFC. While it is known as ICF in Cyprus and we can find no evidence that this entity is part of it. Investment fraud losses tend to be big. ActionFraud released data last summer showing average losses to cryptocurrency scams were over £9000 per victim.
NEVER INVEST FROM A COLD CALL AND ONLY INVEST WITH WELL KNOWN REGULATED COMPANIES
Tips and Advice
- Just like any other shares – Cannabis stocks and ETFs are just the same as other ones and can be bought or sold through traditional brokers/banks etc. Use a firm that you know and trust
- Talk to a professional – Speak to a local authorised financial advisor, read this excellent article by MoneySavingExpert on how to find one
- Do your homework – Is the firm regulated, don’t just believe them go to the relevant authority website and check
- Reviews? – Check out the company you want to invest with to see if there are a good selection of reviews or even articles suggesting it’s a scam
- Read more! – Excellent article by Scam Cryptorobots.
- Personal means private! – Do not divulge personal details unless you have full confidence in the caller and the business they represent.
- Report it! – If you come across a malicious site, then report it to Google
- Too good to be true – It’s a scam!
- Contact – your bank or credit card company if you have already given out financial details.
- ID Protection – If you’re worried about identity fraud and would like to protect your identity contact CIFAS
- Still Unsure? – Join Reassura 0800 888 6400, and one of our fraud advisor’s will help you to stay safe
- To report a fraud – and receive a police crime reference number call Action Fraud on 0300 123 2040 or use their online fraud reporting tool.
Protect yourself from scams and join Reassura either as
- FREE member for scam alerts and newsletters to your inbox
- PREMIUM member for only £18 a year for all the warnings and unlimited access to our phone-based Fraud Advisors
Reassura continues to help raise awareness of scams and fraud along with the impact they have on their victims. Reassura’s team of specialist anti-fraud advisors are here to help members make better decisions and avoid falling victim to scams and fraud.