Beware of Investment Fraud - How to identify a potential fraud

Investment fraud involving Forex trading is one of the most frequent areas of financial fraud recognised and continues to rise.  Whilst the fraudsters continually adapt to current situations and perceived opportunities there are a number of consistent behaviours that flag up the potential for a fraudulent scam.

Giambrone & Partners banking and financial fraud teams are witness to the same strategies that are employed time and time again to deceive novice investors into risking their money.  The following tactics are most frequently used:

• An unexpected contact, often a cold call from someone you do not know. The rise of social media has allowed the fraudsters to use alternative methods of contact through such sites as Instagram, through which nearly one-third of the novice investors lose their money or Facebook. 
• The rising use of celebrity endorsement lulls the investor into a false sense of security. Frequently the celebrity in question is not involved and has not endorsed the investment.
• Pressuring the investor by making a time-limited offer, such as a discount or bonus, coupled with considerable pressure to take up the offer very quickly and not lose the opportunity of a lifetime.
• Fake reviews to support the credibility of the offer.
• As had been said many times  “too good to be true” return on investment is exactly what it is – too good to be true.  Some fraudsters are bringing down the promised financial return to appear more feasible.
• Fraudsters frequently have an authoritative website demonstrating a  high level of market knowledge.
• One of the key factors is the way the fraudster draws in a novice investor by exhibiting a plausible friendly attitude using flattery and befriending them and lulling the victim into a false sense of security
• Once the novice investor trusts the fraudster they may be asked to provide remote access to their device which then enables the fraudster to access banking details and steal from the bank account.

Our lawyers warn never to rush into any type of investment, particularly if you are not knowledgeable as to how the markets function.  The Financial Conduct Authority (FCA) regulates investment brokers and there is a list on the FCA website of properly regulated brokerages.  The FCA also places warnings against investment brokers that appear to be flouting the regulations or who are operating in areas where they are not permitted to do so.

Once the victim recognises that they have been scammed that may not be the end of the matter.  The fraudsters are well aware of the victim’s difficult circumstances and may return to target them again.  Changing tack and appearing as being the solution to all the problems and providing a way to build up funds. 

Giambrone & Partners’ lawyers have considerable success in assisting victims of Forex fraud in the recovery of their funds and by the use of the successful strategies the lawyers have developed together with dogged persistence we are able to restore the lost funds to our clients.

For more information on how the restoration of your funds lost in Forex fraud please click here.