The Government today launched a new drive to help stop people being conned out of millions of pounds through bogus investment schemes.

The Department of Trade and Industry estimates people have collectively invested more than £360 million during the past two to three years in firms offering them the chance to invest in wine, art, jewellery, worthless shares and property for development.

It warned that, while companies made exaggerated claims about the likely returns, the goods usually turned out to have little or no real investment potential and were sometimes sold at such inflated prices a loss was almost certain.

The DTI, which today published advice on how to avoid being conned, has closed down 17 firms offering bogus investments since the trend first emerged two to three years ago.

Consumer minister Gerry Sutcliffe said: "The operators of these scams are very persuasive and it is often people who can least afford to lose the money who are being targeted.

"I want anyone who is tempted to invest their money to think very carefully about anything which sounds too good to be true."

The public is being warned to be on their guard against unsolicited approaches offering investment advice and to beware of pressure to make a quick decision.

They should also be wary of claims that an investment will produce a guaranteed, risk-free or exceptional return and they should always take independent advice.

Tuesday November 25, 2003