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Avoid Falling Victim to a Financial Investment Scam
Financial fraud continues to thrive with wrongdoers finding different ways to deceive and defraud. Giambrone & Partners’ financial fraud lawyers outline below how you can, in some instances, recognise a fraudster and avoid becoming a victim of a scam.
Before making any type of investment, please consider the following recommendations:
- Before considering investing verify with the register of the National Securities Market Commission (CNMV) or the Bank of Spain whether the platform you intend to invest with is regulated by these entities.
- Do not trust promises of impossibly high returns. Scammers invariably offer unrealistically high returns and guarantee quick and easy profits in the cryptocurrency market. In the cryptocurrency market, there are no “low-risk” investments and investors are warned that they may lose their money in this volatile market.
- Be aware that sending cryptocurrencies from one “wallet” or virtual wallet to another does NOT mean that you are making an investment by that transfer alone.
- Be cautious, do not put your trust in people you have met through dating apps who encourage you to invest in the platforms they suggest. A high percentage of scammers contact their victims through fake profiles on dating apps, taking time to build up their connection with the victim.
- Check reviews and opinions in forums about the platform before investing to learn about other individuals’ real experiences with the platform. However, be mindful of the fact that if it is a scam platform other victims may comment before they recognise the scam whilst they still believe the platform is sound.
- Before signing an investment contract, check if establish that the details in the contract and on the platform’s website include their legal name, trade name, domain, web address, headquarters, registration number, and contact details.
- Do not share access to your bank account, electronic device access, or Exchange account credentials with third parties. Also, avoid making investments with the assistance of AnyDesk or similar programmes that allow the supposed investment agent full view of your electronic device.
- Be wary of people who contact you claiming to be from the National Securities Market Commission (CNMV), offering to help you recover your lost investment. The CNMV does not ever directly contact affected individuals nor does it authorise third parties to use their corporate identity for loss recovery.
- Do not send money unless you know the actual destination of your funds. Also, do not invest money in something you do not understand, legitimate financial advisers will not pressure you to make quick decisions without a proper understanding of what is being executed.
- Never make investment decisions based solely on recommendations seen on social media and always verify the source of the information.
Many people are drawn into fraudulent investment schemes due to being unfamiliar with the way investment markets operate, particularly in the relatively new cryptocurrency market. A legitimate financial advisor would always establish the level of experience and understanding an individual has with regard to the complexities of the financial investment market. Giambrone & Partners’ lawyers have considerable experience in recovering client’s money lost in fraudulent investment schemes.
If you have any concerns about an investment scheme you have been recommended to invest in, Giambrone & Partners’ lawyers are able to investigate on your behalf.