An investment scam can start from an advertisement that uses a public figure to boast about a unique investment opportunity and substantial returns.
In an investment scam, the scammer often poses as a personal investment advisor, instructing the victim and encouraging them to make payments. The scammer posing as an investment advisor may direct the victim to open an account with a well-known cryptocurrency service provider and then transfer funds in cryptocurrency from the service provider to a "platform" controlled by the scammers. The scammers can also use fake websites to demonstrate how profitable investments supposedly are on their "platform".
The "investment advisor" may also request remote access to the customer's device. In reality, the scammer wants remote access in order to gain access to the victim's banking information or the victim's own cryptocurrency service. Such "advisors" can be highly skilled at manipulation.
If the bank suspects a scam and requests information from the customer, the scammers can instruct the customer respond to the bank with a pre-composed response provided by the scammers.
Scammers also accept gift cards as a means of payment
In addition to bank transfers or card payments, scammers may try to get the victim to purchase gift cards, such as Apple gift cards or gift cards to various gaming platforms. If the victim provides the redemption codes of the cards to the scammers, they gain access to the value of the gift cards.
The victim often becomes aware of the investment scan when they try to withdraw their funds. Suddenly, redemption is not possible without paying taxes or other additional fees. Often at this point, the victim continues to make payments, as it feels like a way to get their funds back. This way, the scammers only extract more money from their victim.
Warning signs of an investment scam:
- The investment sounds too good to be true.
- There is a sense of urgency and pressure in the situation.
- The investment opportunity is "just for you" or it is a "limited opportunity." Why were you specifically chosen to receive these tips?
- No reliable information can be found about the company offering the investment product, or the company is listed on a warning list of the Finnish Financial Supervisory Authority.
- You are being asked to provide your online banking ID or card details, or login credentials for cryptocurrency services
If you suspect you have fallen victim to a scam, do the following:
Contact your bank and the police as soon as possible. Stop all contact with the scammers and do not make any new payments, no matter what kind of demands you get.
- Read more detailed instructions and contact details in the case of fraud
- Read more about investment scams