‘Don’t Make Pour Decisions’: Police Warn Public About Whisky Cask Investment Fraud, Citing Over $3M in Losses This Year
City of London Police warned the public about whisky cask investment fraud ahead of the holiday buying season. (Photo: Danny Lawson/PA Wire URN:16005857)
On Nov. 30, the City of London Police warned the public in a statement about whisky cask investment fraud and claimed a total of 89 incidents were reported in 2023. The financial damages added up to a total of over £3 million ($3.8 million) in losses.
The City of London Police urged individuals to exercise caution with cask investments, especially throughout the holiday gifting months.
“An investment of a cask of whisky may seem like a wise choice, and perfect as a Christmas present to some, but we would encourage everyone to stay vigilant and to not be sucked in — especially if adverts guaranteed you will get year-on-year returns,” City of London Police Fraud Operations Detective Inspector Nichola Meghii said in the statement.
Law enforcement urged individuals to take their time and seek advice if contemplating investing in whisky casks.
Police also encouraged prospective investors to check the Financial Conduct Authority’s register and make sure the company is regulated by the organization. Individuals are more likely to be afforded certain protections in regards to regulated firms over cask investment firms that are not protected by the FCA.
The City of London Corporation Port Health and Environmental Services Committee’s Chair, Mary Durcan, claimed that cask investments have their risks. Durcan claimed casks were “being sold as a long-term investment[s],” due to the maturation time a spirit spends in a cask.
“This means that it could be several years before investors realize their investments aren’t performing,” Durcan explained.
There is no such thing as a “sure thing” when it comes to any investment, and whisky cask investments pose no exception. Furthermore, if an individual purchases a cask from an investment firm that is not regulated by the FCA and something goes awry, there is a potential chance that the money will be lost forever.
An investigation helmed by the Advertising Standards Authority concluded that these risks were not discussed in social media advertisements from some firms, which went so far as to claim investing in whisky casks could fund early retirement.
“In one particular case, complaints were raised regarding the misleading advertisements of Blackford Casks Ltd.,” the statement read. “Subsequent investigations upheld these complaints, determining that although no fraudulent activity occurred in the case, the ads needed to be revised and not to quote average returns without adequate evidence.”
Law Enforcement urged individuals to stop and think before investing, challenge, and think critically about requests before parting with their hard-earned cash. If an individual has experienced the misfortune of falling for a cask investment scam in the United Kingdom, they should contact their bank and report it to Action Fraud.
“If it sounds too good to be true, then it probably is,” the statement concluded.
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