The scam: Investors are talked into buying bottles, cases or barrels of ‘fine wine’ that are either overpriced or don’t exist.
How it works: Brochures are sent out, and callers promise ‘guaranteed profits’ and ‘fast returns’, while using high-pressure sales tactics.
Why it’s a scam: This type of investment activity should only be promoted to sophisticated investors with a lot of money to invest. Some scammers may have just a small amount of stock, while others don’t have any at all. Some have been known to try passing off cheap plonk as fine wine.
How to invest legitimately: Although the Wine Investment Association (WIA) kitemark can help point you towards approved merchants, membership of the scheme won’t provide you with any formal protection, or give you access to the FOS or FSCS, as the industry isn’t regulated. Potential investors should thoroughly research a firm’s history and expertise using Companies House. Rigorously check wine prices as well as details and costs for storage, insurance, commission, deliveries and documentation. Make sure you can value your wine independently.
The names of the company running these scams Australian Fine Wines and Bottle Wealth Holdings read more on these companys