The U.K.’s tax watchdog has seized three non-fungible tax tokens in an investigation into a tax fraud case that was worth 1.4 million pounds ($1.9 million) which is the first-ever enforcement of this kind.

Three suspects have been detained for attempting to defraud the authorities by allegedly using a website of fake companies worth $250, Her Majesty’s Revenue and Customs said by email. Authorities also confiscated cryptocurrency assets, estimated to be worth five thousand pounds, and NFTs are still to be evaluated.

NFTs, which is a form of digital asset that can be traded via the blockchain network, gained a lot of acceptance among crypto traders and enthusiasts of all kinds this year and even made their way into the most prestigious auction houses like Christie’s as well as Sotheby’s which have multimillion-dollar sales. This market has around $16 billion, an analysis of NFTGo data from cryptocurrency research firm Messari revealed this month.

The tokens, which represent the ownership of digital artifacts such as images or music, are typically purchased and sold through the Ether cryptocurrency. Most popular tokens come in the form of avatars which owners can put as their profile pictures on the internet, similar to those used in the collections of the Bored Ape Yacht Club or CryptoPunks. These can be worth millions and have drawn the attention of celebrities in recent months, from stars like Paris Hilton, Reese Witherspoon, and Serena Williams.

The concerns on NFT legitimacy have been fueled since the beginning of 2022. The beginners within the industry find it difficult to differentiate between the original and copied digital assets, especially with NFT avars. Other NFT projects, like AdRunner, which is a metaverse advertising project seem to be safer in terms of validity. The utility NFT projects focus on building a strong and dedicated community and deliver tokens with value.

The scam NFT cases are growing in number. Unfortunately, with the blockchain technology criminals believe it is much easier to deceive the government. Hence, they get involved in numerous money laundering, identity theft and related criminal activities. However, authorities are cautious, as well and are quite quick to seize any such occurrences at first notice.

“Our first arrest of a Non-Fungible Token is as a cautionary tale to anyone who believes they can use crypto assets as a way to conceal money away from HMRC,” said Nick Sharp, the Deputy Director of HMRC’s Economic Crime. “We constantly evolve to meet the demands of new technologies to make sure we stay in step with the ways that criminals and evaders seek for ways to conceal their assets.”

This comes just one day after the U.S. seized $3.6 billion in stolen Bitcoin in the most significant financial seizure to date, showing police determination to prove Bitcoin isn’t a secure location for criminals to commit crimes.

“This incident proves that criminals aren’t able to hide in the crypto world,” said David Carlisle. He is the Director of Policy & Regulatory Affairs at crypto research firm Elliptic. “Enforcement agencies can monitor and trace criminals’ transactions and also seize NFTs and crypto assets that are used in illegal activity, depriving criminals of their money.”

The fraud suspects are said to have employed sophisticated techniques to conceal their identities. HMRC said that this includes false and stolen identities, fake addresses, pre-paid, unregistered cell phones, Virtual Private Networks (VPNs), fake invoices, and claiming to be engaged in legitimate business transactions.

“Fraudsters generally thrive when the value of assets rises rapidly, and it’s no surprise that they are benefiting from the rapid growth of NFTs,” said Sam Roberts, who is a partner at Law company Cooke, Young and Keidan. “While eliminating legal fees might be one of the main goals of blockchains that are public as well as the asset classes on which they are based but in actual practice, it is not the case – often due to thefts and fraudulent activities.

Legally-adherent creators and owners “should be encouraged to know that courts are still promoting rights to digital ownership, and we can be expecting an increase in this trend soon,” he said.

Considering finance for a refurb? Here’s a closer look at the ins and outs of utilizing it.

Numbers

Although this may seem somewhat obvious, a refurbishment proposal made tends to be almost unbelievable in regard to how much is being requested.

This is often based upon the assumed value of the property, as well as what the value will be of that property once the refurbishment process has been completed.

Looking at the numbers, you have to be careful in crafting a realistic budget and thinking about the timeframe during which the money will be used. There are some cases where it may not be necessary to refurbish a property, especially requiring a sizable amount of money, plus the bridging loan itself could actually prove to be very unprofitable.

Legals

Bridging can sometimes be a very complex process to consider which may require working with solicitors that are familiar with them. For example, someone could request a residential bridge loan, one that they will need to obtain very quickly, so that they can use that money to purchase a home before they have sold theirs.

If you work with solicitors, they can certainly help you, especially creating the paperwork necessary to make the process as expedited as possible.

There are some lenders that will refer law firms to you, especially if you have never done this before, as it will give them confidence about you requesting the money.

Papers

It is vitally important to have all of the documents that you will need to go through this process which will include bank statements, planning permissions, ownership information, company accounts, and many other documents that will certainly be necessary with a heavy refurbishment loan. If you don’t have them, you should not even consider applying for one.

The old saying that you need to have your house in order certainly applies, simply because the rest will literally follow. By working with a seasoned lending manager that can assess the viability of the loan that you want, they may actually help you in making your application go through, plus verify that you have all of the documentation that will be needed.

If you do find someone to help you, when you make your request, the lender will be much more confident, and may approve your loan right away; you may even get a lower rate of interest by working with these professionals.

Exit

Creating an exit plan is absolutely necessary. If it is not the most important aspect of this process, it is certainly one of the most important for getting a heavy refurbishment bridging loan.

To be honest, everyone is looking to make a profit, and avoid heavy losses, all of which can be avoided if you do your proper research, have your information in order, that will ensure your success.

You may also benefit from speaking with architects, quantity surveyors, and even tradesmen that can assist you with this process. You may not even have to pay them for this information, but even if you do, their professional experience will be very valuable if you are trying to obtain a loan in this manner.

Let’s say that you are trying to obtain a long-term mortgage, and this is for rental purposes so that you can make a short-term profit. If you have all the details in order, your application will likely be approved for this reason.

Contingency

This is something that most people will overlook which is a mistake. They are looking at the situation from a glass half full perspective, instead of trying to anticipate the problems that may arise when you are trying to obtain money for a property development.

In the bridging world, if you are the borrower, your proposal needs to be foolproof; you should not say outlandish things or make claims that have no basis, in the reality of the situation.

Although it would be nice to make a substantial profit, which can only happen if you get the money, it should never sound outrageous if you are trying to get a lender to actually give you a loan.

Therefore, a contingency plan needs to be in place if you are denied. There could be situations where the weather will make it impossible for you to move forward, or you may have workers that will not show up for weeks, which can compromise your plans.

Although all of this can be very difficult to think about, you need to be prepared for potential problems that may arise, and have solutions in place that will make your lender more confident about your proposal.

We should also mention that it’s easier to make these proposals when there is no pressure, and you have more time, to complete a project, yet there are some large projects that may lead to difficulties if you are not properly prepared.

Sadly, many people want to invest in the stock market without putting in the work of doing proper research. Often, they will buy a couple of shares and hope for the best. Unfortunately, that is definitely not the right way to start your investment journey. There is much more to investing than selecting a company and purchasing its shares.

If you intend to be a savvy and successful investor, you require discipline and a well-planned strategy that will guide your choices every step of the way.

Do you want to learn more about investment strategies? Well, you are in luck! This article will tackle five common investing strategies, shared by investment managers, and you can select the correct strategy for you. When you get to the end of this article, you will be a step closer to achieving financial freedom and growing your wealth.

1. Income Investing

Fundamentally, this strategy requires you to purchase securities that pay dividends. With income investing, you will have a steady return on your investment, and better yet, the schedule will also be stable.

Income investment includes bonds, mutual funds based on dividend stocks, and dividend-paying stocks. The bottom line is income investing deals with securities that pay returns. Often, this is the best type of investing for individuals who do not know much about investing and want a safer investment choice.

If you choose income investing as your strategy, you will be getting an almost guaranteed income from the bonds by the time you retire.

Advantages

– It is a low-risk investment with decent returns: If you have significant capital to invest, there is a minor risk compared to what you would encounter if you were to invest in a business. In addition, you are guaranteed to earn interest from your dividends with income investing.

 Disadvantages

– Low rate of return: Income investing offers a low rate of return, and you must be careful about where you invest your money.

– Higher dividends with higher rates of returns are risky. If you are only after income, avoid taking this approach as it could go south and has plenty of risks involved.

– It may take a significant period to see results: Income investing is not a practical choice for individuals who would like to attain financial freedom and retire quickly. The returns from income investing are 1% to 2% over an extended period.

– This investing focuses on dividends instead of the underlying value of the asset or company.

– You need a significant amount of money upfront. That is the only way you will earn worthwhile returns. Typically, an average investor will not experience significant benefits from income investing.

2. Growth Investing

Growth investing strategy primarily focuses on investing in companies with a high growth rate. These include Apple, Google, and Facebook, all pretty young companies with a high price-to-earnings ratio. But above all, these companies have a high potential for future growth.

Peter Lynch popularized growth investing throughout the late 90s with the expression “invest in what you know.” It essentially means that you should buy companies you know are valuable so you can make use of their future growth.

It is worth mentioning that this investment strategy may not apply to the current investment market. That said, growth investing can be a poor choice on your investment portfolio, especially if you are getting into the named companies based on their valuation today. If anything, at best, the returns you get will be ‘okay.’

Advantages

– A long-term investment strategy can lead to high returns.

– There is a high growth prospect as your capital is moved continuously in the stocks. However, note that ultimately, what determines whether or not you will be successful in growth investing is the proper timing.

Disadvantages

– It is easier to predict high growth industries, but it is not easy to predict the companies in the high growth industry that will be successful.

– Growth companies are hard to come by as markets have significantly changed since the 90s.

3. Small-Cap Investing

Small-cap investing focuses on a company’s potential to show significant growth. Unlike growth investors, small-cap investors target riskier and younger companies. Their decision is based on the logic that if you invest in a startup when it’s still young and has cheap shares, then the chances are that when they grow and reach the size of companies like Facebook or Google, the investment will offer massive returns.

Advantages

– Small-cap stocks often grow much faster than big-cap stocks. However, it all boils down to the stock selection one makes.

Disadvantages

– Major stock prices fluctuations: Stock prices usually fluctuate significantly, mainly when large funds or big investors sell or buy stocks. Usually, such volatility often has more to do with the handful of large investors’ actions than anything to do with the company. Therefore, going by this, you may be exposed to a massive loss in capital.

– Selecting the appropriate stock is highly risky: There are plenty of small companies to choose from, and there are equally plenty of small companies that fail to show significant growth or go out of business.

4. Impact Investing

Impact investing involves investors purchasing companies with positive environmental or social impact. They view this type of investment as investing in a cause that matters.

Simply put, individuals who take this approach are usually interested in the positive impact of their investment on the environment and society instead of the financial return. When you think about it, it is almost similar to charity.

It is vital to factor in value investing when it comes to impact investing. For instance, if you are passionate about the environment and yet invest in businesses that pollute the environment, your values are not aligned with your investment choice. As with all types of investments, impact investment has its upsides and downsides.

Advantages

– It feels good to support companies you believe make the world a better place. Impact investing is excellent for individuals who prioritize social change. Impact investors target companies that mirror their values.

Disadvantages

– Impactful companies can be pricey: Such companies may also not have solid profit-generating components that most people are usually keen on in the companies they buy.

– It is more about change aligning with your values and beliefs than it is about growing your money. Therefore, impact investing is a better choice for individuals with a significant amount of money as they have no qualms about losing money to a cause dear to their hearts.

5. Value Investing

Value investing involves purchasing companies that are on sale and priced way below their actual value. Fundamentally, a value investment strategy takes all the principles of every type of investment and emerges on top.

With the right approach to value investing, you will be able to account for your interests and values, get income investment stocks of stocks that are on sale at a discount, and grow from companies, including small-cap. With this logic, value investing may be the best investment approach to take.

Typically, value investors purchase companies they know will give them cash flow in the fullness of time, so they get them at a discounted price. Think of it this way, if an individual offers to sell you a $10 note but at $5 instead of the total price, isn’t that a worthwhile purchase?

Investors like Charlie Munger, Mohnish Pabrai, Ben Graham, and Warren Buffet choose value investing for a reason. With value investing, there is minimal risk and higher returns. If Warren Buffet can choose value investing, why can’t you?

Advantages

– Value investing offers you high returns with minimal risk.

– You can purchase company shares at a discounted price when the company itself is on sale. Buying company shares when it is on sale means purchasing stock when there is some economic fear or problem. The prices will often go back up to the price – or higher – before the economic contraction.

Disadvantages

– Value investing is not a practical investment choice for everyone. If you are an investor who likes to get the benefits from your investment quickly, this may not be a viable choice for you. When it comes to value investing, you need patience.

– You require thorough knowledge when it comes to value investing. The only way to succeed at value investing is to have a base-level understanding of how it works.