Beware Of Investment Fraud – How To Identify A Potential Fraud – Criminal Law – UK

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 (FAC) 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.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.