Whisky Barrel Scam Victims Being Conned
Out of Millions

A recent BBC investigation looked closely at whisky barrel investments, uncovering worrying practices, and found victims who had lost their life savings.

Major issues with whisky trading include the lack of a centralised register of casks, making it difficult to verify ownership, and an absence of set pricing for casks, according to distillery or age. This has led to investors being duped, and the BBC spoke to several people who shared details of what, for some, were significant financial losses. Of note, whisky cask traders were accused of:

• Selling casks at many times their actual worth
• Selling the same casks to more than one investor
• Selling casks that didn’t exist
• Issuing certificates for casks that were not in the correct storage location
• Promising investors lucrative returns that didn’t materialise

The BBC investigation named Cask Whisky Ltd as one of the companies involved. Its CEO Craig Arch (real name Craig Brooks) is a disqualified director who was convicted of fraud in 2019 following a cold calling ‘carbon credits’ scam.

It was also discovered that Mr Brooks runs another company, Cask Spirits Global Ltd, under the false name Craig Hutchins.

A further company highlighted during the BBC’s investigation was Whisky Scotland, with an office address in Glasgow and directors who have since vanished.

Sarah Spruce, Legal Director, said of the BBC’s findings:

“My specialist scam team help clients who have lost out to a wide range of unregulated investment scams, including cryptocurrency, so we understand very well the distress that investors experience when they realise their money has gone.

All is not lost, however – even though it may seem that the usual routes to compensation for regulated investments are not available, your bank still has a duty to keep you and your money safe from fraud. This means that, if you paid for your whisky casks through online or telephone banking, believing the investment was genuine, then you may well be able to make an Authorised Push Payment Fraud claim for compensation.

In our experience, we know that scam victims often feel embarrassed or ashamed that they have been duped by scammers – you are not alone and help is available. If you or a loved one have been affected by whisky cask fraud, get in touch with my team for a no obligation and confidential conversation and we can investigate whether you may be eligible to make a ‘no-win, no-fee’ refund claim.”

APP Fraud happens when a scam victim is persuaded to transfer money from their bank account for what they believe is a legitimate reason, such as an investment. Using the Faster Payments System, the money is transferred almost instantly. It is common in this type of scam for the money to be moved to another account, also in the fraudster’s control, making it difficult or impossible to trace and recover.

Red flags to look out for in these types of scams include:

• Promises of low risk and high return
• Receiving a call, text or message out of the blue
• Time-limited, pressure-based tactics
• Being asked to keep the ‘offer’ or contact a secret

Changes to APP Fraud reimbursement were introduced on 7^th October 2024 making it easier and quicker to recover money lost through fraud. An upper limit of £85,000 applies to the new scheme. Banks are obliged to investigate APP fraud and reimburse eligible victims within 5 working days. Not all cases fall under the new rules, and there are still alternative ways to claim back lost money.

If there is an issue with how the bank deals with these claims, then a complaint can be made to the Financial Ombudsman Service (FOS), an independent, government-backed body, set up to settle disputes between financial institutions and their customers.