An ongoing South Yorkshire Police investigation into investment fraud has resulted in the arrests of two males, aged 48 and 50, on suspicion of fraud by false representation and money laundering on Wednesday.
The investigation occurred after a number of reports received from victims who lost money in the fraud. The scam involved tricking victims into investing in a scheme or product which doesn’t exist.
One arrest was made in Sheffield and the other in North Wales after two properties were searched.
The victims are then reported to have reived a follow-up call claiming that, for a fee, a fake business can recover their funds.
The National Fraud Intelligence Bureau made the discovery after an analysis of data received from the national fraud and cybercrime reporting center.
In South Yorkshire, there were 248 reports of investment fraud between February 2020 and February 2021 and 30 reports of fraud recovery fraud. This equals an overall loss of over £4 million pounds.
Chief Inspector Leanne Dean said: “Investment fraud – and subsequent fraud recovery frauds – are particularly distressing fraud types. Not only has the victim lost what can be a substantial amount of money, but the fraudsters then stoop low enough to target the same person yet again, making empty promises that fake companies can get their money back for them. The impact, both financially and emotionally, can be significant.
“Here in South Yorkshire we therefore take reports of this type of offending extremely seriously and will always take action when we are able to do so. The warrants we executed yesterday across the country demonstrate our determination to track down suspected perpetrators and our enquiries into this particular investigation will continue.
“If you think you have been a victim of this sort of scam or any type of fraud, it is so important that you report it to Action Fraud so that valuable information and intelligence can be shared and circulated. Your information may just prevent somebody else from becoming a victim too.”
The two people arrested have now been released under investigation.
Contact your bank immediately if you think you’ve fallen for a scam and report it to Action Fraud via actionfraud.police.uk or on 0300 123 2040.
