The number of investment scams, in which criminals promise extremely lucrative opportunities that do not actually exist or are misleading, is on the rise, attracting the attention of Romanian police.

Online investing has grown in popularity in recent years, but that growth has also brought scams that can leave you empty-handed.

According to the IGPR, investment fraud represents a variety of schemes and may include dealing in fictitious stocks, non-existent cryptocurrencies, pyramid schemes or fictitious financial products.

From the reports received by the Romanian police, it was established that the affected individuals accessed various social media posts that contained advertisements for financial investment services and then provided contact information in the forms provided in these advertisements.

For investment questions, contact by phone

Then they could be contacted by phone by unknown persons who used telephone numbers both in Romania and in Great Britain.

After repeated negotiations, the attackers usually manage to convince the victims to register on various online investment platforms. At the beginning, the investment is quite small, about a few hundred euros. The investment consists in buying cryptocurrencies and transferring them to electronic wallets specified by the attackers.

These amounts then appear in the victim’s account opened on these investment platforms.

In many situations, under the pretense of providing technical support, attackers convince victims to install remote desktop applications (for remote control) on the electronic devices they use (phone, tablet, laptop, etc.), through which they gain complete control. these devices.

Thus, without realizing the effect of their actions, users give attackers access to all personal and banking data available through the devices.

Victims are then persuaded to send more sums of money (cryptocurrency) as the investment appears to be profitable, thus even reaching tens of thousands of euros “invested” in such fraudulent schemes.

When trying to withdraw money, a number of pretexts and scenarios are invented, with the help of which the authors try to convince the victims that in order to benefit from this profit, they should transfer more sums of money under such pretexts as: withdrawals, transfer guarantees, fines, etc. .

Criminals promise instant earnings

At the same time, data accessible through compromised devices is used in various ways, such as opening accounts on various cryptocurrency trading platforms, fraudulent bank transfers, money laundering, etc.

One of the common fraud methods in a situation where users give attackers access to their own devices and banking data is to take out online loans in the name of victims and steal money.

Other ways of misleading potential investors can be represented by advertisements, usually on social media, that use images of well-known companies listed on the stock exchange, with the promise of very large immediate profits by “buying shares” that will “generate dividends” in tens of thousands of lei “directly to the card” of users.

In such cases, attackers use malicious links that try to obtain personal and financial data of users.

What excites criminals

Get-rich-quick promise: Investment scams often begin with enticing promises of quick and reliable returns. Scam promoters try to attract “investors” by using attractive phrases such as “double your investment in a week” or “guaranteed profit”;

Ease with which sums of money are refused: victims are persuaded to transfer, sometimes very large sums of money/cryptocurrency, to unknown organizations/persons, both initially and subsequently;

Relinquishment of control: due to the desire to get rich quickly and against the backdrop of a lack of technical knowledge, victims easily abandon any means of digital security, relinquishing full control over the electronic devices used;

High level of technical resources for attackers: as a rule, attackers demonstrate increased skills in using available technical resources: multiple phone numbers, caller ID spoofing, fake platforms hosted outside of Europe, anonymization of cryptocurrency transactions, etc.;

Pressure on investors. Scam promoters can often use aggressive “advertising” “investment” tactics to get users to act quickly, such as deadlines or exclusive opportunities that “go away fast.” In this way, they try to avoid thorough checks, which can lead to the clarification of the victims about the fraudulent scheme.

Carefully! Investment fraud is often characterized by limited or conflicting investment information. Investors do not have access to basic information such as the company’s physical location or investment strategies, but there is no shortage of promises of inflated returns.

Investment fraud can have significant financial and emotional consequences for victims.

Investors lose money, and in some cases, their savings. Financial losses can lead to stress, depression and other social, family, etc. problems. Confidence in one’s own judgments may also suffer.

Recommendations from the Romanian police to avoid falling into a trap

1. Financial education: The most effective way to protect yourself from investment fraud is to constantly educate yourself about investments. Understand what it means to invest safely, how to recognize the warning signs of a scam, and how to be skeptical before investing.

2. Digital education: the vast majority of computer attacks can be prevented by elementary cyber hygiene measures – reliable passwords, increased attention to links/attachments from unknown sources, non-disclosure of personal data, multi-factor authentication.

3. Carefully check the company/platform through which you intend to place your investments: any firm or person offering investment services must be licensed and authorized. Always check the company’s history and make sure it is properly licensed. We also recommend visiting the website.

4. Beware of unrealistic promises: If it sounds too good to be true, it is most likely a scam. Keep a critical eye and do not deceive yourself with unrealistic promises of profit. Be skeptical of promises of huge quick earnings, as well as limited-time ads. Financial investments are associated with risks, and no authorized person can guarantee profits!

5. Do not provide personal or financial information to parties other than authorized persons. Purchases of shares can only be made through an authorized intermediary and do not require payment or personal details through the website.

6. Request written information: Always request written information such as investment prospectuses, company details or any other relevant document. Please read these documents carefully and make sure you understand everything that applies.

7. Consult an independent financial expert: If you are unsure about an investment opportunity, consult an independent financial expert. They can give you advice and assess the legality of the investment.

8. Don’t be pressured to hand over money: Scammers may use aggressive tactics to get investors to act quickly, such as deadlines or exclusive opportunities that “go away fast.”

9. Report a scam: If you are a victim of an investment scam or suspect someone is trying to scam you, report the situation to financial authorities and the police.

An important resource for legal investment documentation is the Financial Supervisory Authority website (asfromania.ro). Here you can find updated information on legislation and authorization, as well as a notification section and information on platforms that are not allowed to provide investment services and activities. Financial Supervisory Authority – Investor Notice – Information (asfromania.ro).