RESIDENTS in Dorset lost more than £365,000 in pyramid scheme scams last year, new figures show.
Utilising data from the National Fraud Insurance Bureau (NFIB) to uncover which regions have lost the most to pyramid scheme scams, Scams.info say Dorset is the third worst affected region in the UK.
With £367,173 lost per 100,000 people in 2022, Dorset lost 82 per cent more in pyramid scheme scams than in neighbouring county Hampshire, which lost £62,495 per capita — ranking 16th.
A pyramid scheme is a fraudulent investment pitch that relies on promising unrealistic returns from imaginary investments. Initial promoters recruit investors, who in turn recruit more investors. The scheme is described as a ‘pyramid’ because at each level the number of investors increases.
In Dorset there were 12.59 pyramid scheme scam reports per 100,000 people – more than six times the amount recorded in Devon.
London residents lost the most to pyramid scheme scams last year, losing a staggering £1.2 million per 100,000 people.
Scams expert Nicholas Crouch said: “Possibly the biggest red flag for pyramid schemes is the huge promises made by ‘employees’ to entice people. These typically come in the form of flash cars provided by the scheme, holiday homes, the idea of being your own boss and the freedom to retire early thanks to the scheme. If it sounds too good to be true, it probably is.”
A Dorset Police spokesperson told the Echo residents should not be afraid of reporting any suspected pyramid scheme activity to itself or Action Fraud.
It said: “Dorset Police works with our national and regional partners to share information and intelligence regarding fraudulent schemes, and we are committed to identifying those involved in these scams and taking robust action against them.
“We would always urge anyone considering making a financial investment to seek independent financial advice and check with the Financial Conduct Authority to see if the company is registered.
“If you suspect you are being targeted by a scam, always report it to Action Fraud or Dorset Police.”
Visit service.police.uk/advice/advice-and-information/fa/fraud/?frc=55 or actionfraud.police.uk for more information and advice on fraud prevention.
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