Investing is a rollercoaster of loss and gain. On one hand, there is the potential to make millions off a simple, low-risk investment, on the other hand, you are at risk of losing your entire savings with markets changing, and investment scammers looming.
If you have been diversifying your portfolio, you have likely come across some shifty characters proposing ‘unmissable’ investment opportunities.
With this, some people have fallen victim to investment scams, and have only recognized what has happened when things are too late.
In this blog, we will share exactly how to spot if you have been a victim of an investment scam.
The key is to act fast and gather all of the information you have on the people and company you have had dealings with. Take a look at the following signs.
1. They Have Cut All Contact
Often, one of the biggest red flags to look out for with investment scams is the sudden cease of all contact. Investment scammers operate in some ways, from pump-and-dump scams to crypto scams, their methods for getting assets from vulnerable investors are advanced and often go unnoticed.
They will pressure victims into taking part in their schemes, only to then cut all contact once they have received the amount of money they set out to steal.
Cutting all contact means you, the victim, are unable to get a hold of your point of contact, to the point where their mobile devices have even been disabled.
2. You Are Unable to Log Into Your Accounts
Investment scammers are highly advanced, to the point where they create seemingly legitimate websites and investment tracking programs for their victims to perceive things as going well.
With this, once things start to seem suspicious they tend to lock victims out of accounts, or even remove all traces of their website and accounts. This inability to log into your fake account leaves your investment in the hands of scammers, unable to be withdrawn.
3. You Can’t Find Traces of the Company Anywhere
Investment scammers are often not new to these schemes. More than likely, they are way ahead of their victims and have already begun to remove any trace of their existence from the digital space.
Usually, they operate under a false registered business name too, meaning no matter how hard you search, you are unable to find the true company name that has likely been ‘dissolved’ to get away with stealing funds.
4. You Find Stories of Other Victims
Around this time of completing manic research, you will likely come across forums of people reporting being similarly scammed by the same company.
At this stage, it would be a good idea to collate all information and contact legal authorities to report the incident.
5. The Company is Not Registered with the FCA
The Financial Conduct Authority, the FCA works to protect consumers from becoming victims of fraud from regulated companies.
With this, all unregulated companies are often not regulated by the FCA, leaving victims vulnerable to not receiving their investments back.
Companies like WRS work to support victims of fraud, and in some cases even retrieve the entirety of lost funds back.
Bottom Line
Overall, all hope isn’t lost if you have been a victim of an investment scam. Once you have recognized what has happened, you need to act fast.
Contacting your bank is a good option, but be aware that it is not guaranteed that your money will be retrieved this way.
Contacting an investment fraud lawyer is the best option at this stage to begin the process of tracing your finances.