Financial Fraud Recovery Claims

What is an investment scam? 

An investment scam occurs when a scammer encourages a victim to invest their funds into a false investment company.

Many scammers will act as accounts managers/brokers. The will offer false guidance and support to victims throughout the scam, making these scams extremely convincing and sophisticated.

Once funds have been invested, an investment scam will conclude:

• with victims being left with no way to recover their invested funds and ‘profits’ from the investment account or
• contact ceasing between themselves and the scammer. 

Investment scams are considered a form of authorised push payment fraud as the victim authorised the payment themselves. However, they were unaware at the time that they were falling victim to a scam. 

There has been a drastic rise in investment scams since the introduction of cryptocurrency.

Unfortunately, more and more people are falling victim to these scams, with the banks often not doing enough to protect their customers from the risk of financial harm. 

How do scammers target their victims in investment scams?

It is common to see scammers post professional adverts online to lure victims in. The ads often promise excellent rates of return and small start-up fees.

In addition to this, scammers often set up fake websites that look just as a genuine company website would be expected to look. The websites make it extremely difficult for victims to spot that they may be at risk.

Scammers also use methods such as unsolicited correspondence (messages) and cold calls to sell their investment services to victims. They can be very persuasive and manipulative, enticing victims to begin investing sooner rather than later.

What is an impersonation scam?

An impersonation scam occurs when a scammer poses as a genuine company/authority to pressure victims into making payments to them.

The most common types of impersonation scams are:

• Bank scams,
• HMRC scams,
• Service provider scams (Sky, Virgin Media etc.).

Impersonation scams are considered a form of authorised push payment fraud as the victim authorised the payment themselves. However, they were unaware at the time that they were falling victim to a scam. 

How do scammers target their victims in impersonation scams? 

The most common way scammers target victims in impersonation scams is via cold calls or unsolicited correspondence (messages). 

Scammers will often place an immense amount of pressure on victims during impersonation scams.

For example, by telling them their bank account has been compromised and there is a high chance that their funds are at risk.

This deliberate tactic is used to create panic to ensure victims move their money quickly without thinking through the transaction or seeking further advice. 

What is a romance scam?

Romance scams occur by scammers making contact with victims online.

Scammers will then take time to develop a trusting relationship to trick victims into believing they are a genuine friend/romantic partner.

Romance scammers will then request money from their victims. Sometimes with the promise that the money will be returned in the near future.

Once the money has been transferred, scammers will then cease contact with the victim, leaving them no way of recovering their funds. 

Scammers will use tactics to pressure and emotionally manipulate victims into sending money to them. For example, creating a narrative that the money is needed urgently for medical bills.

Investment scams are considered a form of authorised push payment fraud as the victim authorised the payment themselves. However, they were unaware at the time that they were falling victim to a scam. 

How do scammers target their victims in romance scams? 

Scammers will often make contact with their victims on social media, posing as someone they are not.

Scammers will dedicate time to building an established social media platform to ensure the profile looks genuine to victims.

Often, they also create fake profiles on trusted dating platforms which most people expect would be subject to strict verification processes.

What is a purchase scam?

Purchase scams occur when scammers pose as private sellers and advertise goods for sale online using a variety of online platforms such as:

• social media,
• eBay, or
• Gumtree.

Victims will then find that, after making payments, the goods do not arrive. The scammers will likely have ceased contact by this point leaving victims with no way of recovering their money.

Purchase scammers can advertise various of goods. However; the most common goods include:

• Motor vehicles,
• Electrical items such as mobile phones, computers or gaming consoles, and
• Holidays

Investment scams are considered a form of authorised push payment fraud as the victim authorised the payment themselves. However, they were unaware at the time that they were falling victim to a scam. 

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