Loco London Gold Fraud
Latest Case Scenario
Fraudsters approached victim via cold calls purportedly for research interviews or questionnaires. After fraudsters had persuaded victim intensively and claimed that their company would give a tablet computer to her as a welcoming gift, victim decided to invest on LLG. Victim then signed documents authorizing fraudsters to trade on her behalf, and fraudsters conducted frequent transactions without notifying the victim. Victim finally suffered from a total capital loss after a few months.
Also, fraudsters approached Mainlanders for LLG investments via long-distance cold calls or instant messaging application. They provided coaching to victims in investment transactions, or would even trade on their behalf. Victims eventually suffered total loss and made reports to the police.
How does it work?
Fraudsters generally attract and lure victims into fraudulent precious metal transactions (e.g. bullion investment) via cold calls. Subsequently, they ask the victims to open and deposit money into an investment account and sign documents authorizing a third party to trade on their behalf. However, the agents carry out frequent transactions charging hefty commission and overnight interest. The victims eventually find themselves losing all their capital as a result of investment losses and commission deducted.
Fraudsters modified their modus operandi frequently. They used different types of bullion products (e.g. Renminbi Kilobar Gold Contract, Paper Gold, Gold Bar, 99 Tael Gold Contract, HKD Kilo Gold Contract, Loco-London Gold, etc.) as disguise to lure the victims into fraudulent investment.
What is our advice?
- Seek expert advice from professionals before engaging in complicated investment products;
- Make transactions at reputable financial companies or banks;
- Apprehend all the terms and details on any agreements, authorization documents or contracts if you are going to sign them;
- Never disclose the online user login name and password to anyone; and
- Check immediately all the transaction records upon receipt of accounts’ statements. If any suspicious or unauthorised transaction is found, make enquiries with the relevant financial company or bank as soon as possible.