Asian Fine Diamond Scam: Singapore Investors are sold diamonds that are either overpriced or don’t exist.
How it works: Cold callers encourage investors to part with thousands of pounds by insisting diamonds, especially coloured ones, will provide attractive returns.
Why it’s a scam: Diamonds bought could be overvalued. One member’s elderly father invested more than £56,000 in three diamonds only to find they were actually collectively worth £20,000. And some fraudsters may advise investing even more money in larger stones that don’t exist.
How to invest legitimately: The diamond trade is an unregulated market that’s hard to understand – even seasoned experts can disagree on a diamond’s value – while you’ll need to consider other costs such as VAT, storage and insurance. Seek independent or legal advice before committing to any investment of this sort.