Being able to invest in something that you have a passion for and that you will enjoy learning more about always sounds like an attractive way to structure your portfolio. The problem, however, is that there are scams and fraudsters who look to exploit your passion and enthusiasm for their own gain. With this in mind, we’re going to talk you through the signs of whisky investment scams that you need to know about.
Always be wary of unsolicited approaches
If you are contacted out of the blue by someone who is offering you the chance to get in early on what feels like your dream investment, take a moment to think things through. Scams in the world of whisky investments will often try to take advantage of your passion for the subject, trying to distract you from the need to perform due diligence just as you would with any other form of investment. Thinking about why the person who has approached you has done so will help you maintain perspective and make the right decision about what to do next.
Only ever do business with an established name
Knowing who you are potentially going to do business with is essential in the world of whisky investments. A track record, case studies, and testimonials from past and present investors are all things that any established name in the business will be able to provide you with. They will also be open and forthcoming with other details you ask for and be open to building a long-term, transparent relationship with you.
“One of the key questions that would-be investors shouldn’t be afraid to ask any company they’re looking to invest with is ‘Can I meet you? Can I spend some time with you and get to know who you are?’” – Alphie Valentine, Co-founder of Hackstons, specialists who provide opportunities for whisky investment and consumption. If you are not offered this type of service, this is a strong indication that something is not right.
Promises of guaranteed returns are a red flag
A company that offers opportunities to invest in cask whisky will want to attract new investors and retain its existing clients, but a legitimate company will never promise guaranteed returns. Yes, they will look to present you with attractive offers, but they will also know that the price of any given asset can go down as well as up. Avoiding unsubstantiated promises is key if you want to make sure that you don’t fall victim to a whisky investment scam.
Make sure you verify with a Deliver Order
By far the best way to prove you own what is being advertised is to get a Delivery Order. This vital document will list you as the owner, detail what you have invested in, and include other important information, such as where the casks are being stored. It’s all too easy to get caught up in the moment and to turn your back on the basics, but it’s performing every step in the due diligence process that will protect you and your investment portfolio.
Make sure to ask about climate-controlled storage
A knowledgeable point of contact will be more than happy to talk you through the nuances and subtle points about how your casks will be stored. Ask about the location, the nature of the storage, and what the company is going to do to address temperature fluctuations to gauge their knowledge and understanding. While a stock or bond will just sit there, a tangible asset like cask whisky needs to be stored and handled to make sure that it doesn’t degrade. A lack of information about storage facilities is an indication that a scam may be in operation.
Identify any hidden costs to gauge transparency
If you are asked to pay several types of management and storage fees that are hidden away in the contract, take a moment to step back and look at the bigger picture. Any attempt to hide the true costs of the investment points to a scam, and that is certainly not something that you want to get involved in. To assess the real nature of the opportunity, the cask whisky company should be able to detail all of the costs and overheads in a way that is simple and transparent.
Don’t give in to high-pressure tactics
There is a difference between marketing a company and applying high-pressure sales tactics to try to force people to take action that is not in their best interests. If you are performing your due diligence and find that you are being bombarded with messages and calls to make an investment, this is a strong indication that someone is attempting to scam you. This is in contrast to the content you will see from the likes of Hackstons on Instagram, where the focus is on raising awareness, responsibly promoting the brand, and education.
Taking a moment to step back and check that none of the warning signs of a scam are present is the best way to keep you and your money safe in 2026. Putting your passion to one side and adopting a pragmatic approach will ensure that you protect your capital.
Pallavi Singal is the Vice President of Content at ztudium, where she leads innovative content strategies and oversees the development of high-impact editorial initiatives. With a strong background in digital media and a passion for storytelling, Pallavi plays a pivotal role in scaling the content operations for ztudium’s platforms, including Businessabc, Citiesabc, and IntelligentHQ, Wisdomia.ai, MStores, and many others. Her expertise spans content creation, SEO, and digital marketing, driving engagement and growth across multiple channels. Pallavi’s work is characterised by a keen insight into emerging trends in business, technologies like AI, blockchain, metaverse and others, and society, making her a trusted voice in the industry.
