CITY of York Trading Standards has received information about a new type of rogue trader - the "investment scammers".

We would warn all readers to be aware of this latest scam.

Investment scams include a wide range of schemes offering income, interest or profit in return for a financial outlay.

The "investments" may be art, property, wine or stocks and shares, and what they all have in common is that they promise exceptional (unrealistic) returns compared to other forms of investment.

Unfortunately, most of these so-called investments are unregulated, with almost no chance of compensation if the investments have been mis-sold or misrepresented.

Introductions to such investments are almost always made by cold calling by telephone or email, followed by a brochure and further phone calls. It is worth remembering that the perpetrators of these scams are practised telesales operators posing as experts in their field, and potential buyers are pressed to make quick decisions in case they miss the opportunity.

In some cases the goods do not exist, or have very little real value or investment potential.

In all cases the goods do not represent a viable investment.

We would echo the Department of Trade and Industry's advice to:

Beware of unsolicited or unexpected approaches offering investment opportunities of any kind. Always check on the credentials of a company/individual before dealing with them

Beware of claims that an investment will produce guaranteed, risk free or exceptional return

Beware of any investment whose past performance and potential growth cannot be easily checked

Beware of pressure to make a quick decision and never sign up to anything immediately

Always ask about payment of commission. Beware of an up-front commission payable at the time of purchase instead of the time of sale

Beware of being told to keep the deal confidential. If the deal is legitimate, why would you need to keep it confidential?

Never give your bank account numbers, credit card numbers or other information to anyone you do not know or whose credentials you have not checked.

Ignore emails, chain letters or any other unsolicited approach.

If you believe you have been approached by a scam operator or have lost money as the result of a scam or need information on any other consumer matter phone City of York Trading Standards on 01904 551562 for advice or to make an appointment (we are situated at 9 St Leonard's Place).

Updated: 08:57 Thursday, January 29, 2004