DORSET residents have been warned of a new scam encouraging investment into fine wine.

The alert, issued by officers from the National Fraud Intelligence Bureau (NFIB), urges residents to be wary following reports of the scam.

A spokesman said: “Whilst it might be easy to identify a fraudulent investment in non-existent fine wine, there is another tactic which is much harder to detect that relies on limited knowledge of the investor in this specific area.

“In many cases, the fraud relates to the value of the wine as opposed to the existence of the wine. Therefore, fraudsters will be able to prove to the victims that they have the wine in stock.

“However, the wine in stock will be significantly cheaper than the inflated price the fraudsters ask the victims to pay.

“Whilst it may look like a ‘real deal’, the dramatically inflated prices make the promise of any returns unrealistic.

“Assessments of reports show that fraudsters charge victims an average of 47 per cent more than the comparative market values at the time of sale.”

The brokers who cold call victims are likely to say that an increasing market in China will guarantee tax-free profits, telling potential investors that the risk is “extremely low”.

Anyone contacted about such a scheme are urged to seek independent legal or financial advice or get in touch with Action Fraud by calling 0300 123 2040.