How to Report Someone for Investment Fraud?

The most important thing about fraud is to spot and report it as soon as possible. Of course, it is best to avoid this scenario, but sometimes it is simply inevitable that bad things will happen to you. In that case, you can do nothing but to report it and seek help. Think of this as an emergency that the police must be notified about.

You should contact them immediately if the precaution is ongoing or has occurred in the last 24 hours, if you know the suspect, etc. Sometimes it is not easy to notice fraud, because people skillfully pretend while offering you the opportunity to invest in various schemes. The business does not actually exist or is worthless and that is why it is important to protect yourself and your property.

Investment fraud

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This type of fraud is also known as sale fraud, hedge fund fraud, land banking fraud, etc. It is a plan that is specific to financial services such as stocks, bonds, etc. Although you will first suspect one person, there are probably more fraudsters behind this behavior. These are mostly groups that work hard to deceive as many people as possible. They will have different target groups, and among them may be people from the community who trust them.

So you can’t guess who’s behind all this. It is especially difficult to identify fraudsters thanks to the developed technology they use. You will often see a perfectly edited profile on social networks, which at first glance instills trust, but suspicious people can be behind it. They will use media for advertising and messaging for the purpose of organized payment.

How to report someone for investment fraud?

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Although it is difficult to determine at the beginning whether you are a victim of this scam, if something goes wrong, you need to take the following steps. For example, if you received a defective product or a faulty product, you need to contact the online retailer immediately. You also need to express your dissatisfaction with their response if necessary. Learn all about your rights before you pay by card. If you suspect that someone is using your card for fraud, notify your bank immediately. This will block the card and no one will be able to misuse it. However, if you are sure that you are a victim of an investment fraud, try to remember all the details about the fraud.

For example, it’s the name of the company, the names of the people you’ve talked to, their contact information that includes a phone number, and so on. Don’t forget the investment information you received from them, because they contain the registration numbers of the regulator. It would be good to determine the time frame of this event as precisely as possible and to submit a police report. If you don’t know what exactly to do, you should visit this website and search for more answers. It is also advisable to have a credit report from all credit reporting companies, but also a list of telephone conversations and other useful information.

How can I avoid investment fraud?

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Stop answering sales calls or emails. Do not give anyone credit card and payment information. Even if someone introduces themselves to you as a financial services professional or civil servant, look for contact information before continuing the conversation. Avoid unusual forms of payment, as well as brokers who promise you to make money. Using encrypted messaging apps is a big risk, because apps hide the location of the person behind this. You don’t know who you’re talking to.

Types of investment frauds

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There is a wide range of deceptive methods used by fraudsters to trick people into investing in their bogus projects. However, the most common schemes they use are Pyramid schemes, Ponzi schemes, Pump-and-Dump, Advance Fee Fraud and Offshore Scams. These schemes represent fictitious opportunities involving stocks, currency, real estate, etc. When a fraudster promises a potential victim a big profit in a short period of time, and there is no coverage for that, it is a pyramid scheme. They make money on new customers who are constantly investing and filling their budgets. That is why this seems like a legitimate marketing scheme, but it comes to an end when it becomes impossible to accept new participants. The Ponzi scheme is another way for fraudsters to raise money from new investors.

Here you can actually get a certain amount of money at an earlier stage. Like the previous phase, this one requires a constant inflow of money to be sustainable, but there is a difference between the two schemes. After the fraudster can no longer attract new investors, the scheme collapses. Pump-and-Dump is about buying stocks at very low prices and then spreading misinformation about them. In that case, the fraudster will buy cheap shares of a small company, but will spread false information in order to become interested. The shares are increasing on promising shares, because the people who fall for this story are really creating a demand for purchases. In the end, the shares are sold at a very high price, while investors are left with worthless shares and the fraudster disappears forever. Advance fees can be another type of fraud, and they also include low-cost stocks.

They will generally ask you to send a fee in advance to pay for the services. However, if you do, you will never see your money again. Offshore Scams come from another country, and the ideal target is an American investor. It is interesting that this type of fraud has different forms, which means that it can be a combination of previous scams. Fraudsters will generally manipulate various types of offers in various ways, and it is not easy for American law enforcement agencies to find those responsible when they are abroad.


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So, don’t take offers that include investments on the list of places lightly. If you want to make a safe investment, it is important to do some research beforehand. Don’t forget the potential warnings you notice. Fortunately, you can always turn to experts for appropriate financial advice. Fraudsters can be very cunning to access a bank account or sensitive information and therefore should always be vigilant.

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