Offshore investment warning for Welsh farmers
WELSH farmers who have recently received their Single Farm Payment cheques were warned by the Farmers' Union of Wales today to beware of fraudsters targeting them to take up offshore investment opportunities.
The warning was issued after Lloyds TSB Agriculture revealed farmers could be in danger of losing large sums of money to fraudsters following a spate of criminal activity targeting the industry.
"The bank discovered a number of farmers are being targeted by fraudsters, enticing them to invest large sums of money in non-UK stock with promises of spectacular rewards," said FUW's Director of Business Development Emyr James
"In one case, Lloyds TSB stopped one of its customers transferring US $60,000 to Florida. It appears that farmers in recent receipt of Single Farm Payment cheques are being specifically targeted."
Lloyds TSB Regional Agricultural Manager for Wales Gwilym Francis said: "This is a very serious issue and we are urging farmers in the region to proceed with caution when contacted regarding investment opportunities.
"We already know that at least three customers have been targeted, and there may be many more.
"Anyone approached by a business offering a non-UK investment opportunity should get in touch with their financial adviser or local agricultural bank manager to discuss in more detail. If the investment scheme seems too good to be true, then it probably is!"
In all three cases, the fraudsters approached farmers who have already made investments and advised that their existing funds were making a profit, although locked-in for 12 months.
Known as boiler room frauds, these typically overseas operations use high-pressure selling techniques to persuade UK investors to purchase shares, which turn out to be worthless.
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