Investment Scam Story

Today, we had the privilege of speaking with a brave individual who was a victim of an investment scam.  His courage to come forward and share his story is truly commendable. The level of sophistication that these scams are reaching is both astonishing and concerning. We have attached his detailed account of the scam and the red flags he wishes he had known about. In the context of his story, these red flags stand as stark warnings.

This gentleman was in his office in Hong Kong when he was first called and repeatedly called about investment opportunities. His role is public-facing, so his contact information is out there, so receiving random calls was not atypical to him.  He had an interest and a need for investments, so he listened. The caller followed up with brochures, and he was directed to a multinational website, so everything presented as established, professional, and real.  He was asked for a small investment while everyone ‘got to know each other’ and then was approached for a unique and limited opportunity… one that would require a much more substantial investment to participate in. He wired the money as instructed, and through what we can only assume were correspondent banks, the end destination of funds (Mauritius??) was not apparent to him, another potential red flag.  After the funds were sent, the scammers disappeared on him.  No more calls, no ability to contact, and even the website was closed. This is, unfortunately, when he knew he had been scammed.

Through group chats on investment sites, he discovered he was not alone. While most victims were older, we know that everyone is vulnerable. I asked what other gaps and opportunities he saw in what transpired. Two that he called out:

• There is a lack of cross-border cooperation and collaboration with law enforcement, which allows scammers to use this to their advantage.
• There is a lack of successful prosecution, and there seemed to be little fear of prosecution (this was his experience in the Philippines).

The investment scam flags he wishes he knew then and wants to share now:

• The use of large call centers – listen for this: if you hear multiple calls in the background, stop; this is not normal.
• The investment firm is based in a country different from yours.
• Your investment funds are sent to another country.
• They use the allure of ‘insider knowledge’ to solicit larger investments. Stop. This is illegal.

While every scam may have its unique elements, the more we share our experiences, the better equipped we are to prevent more victims.   Share these insights, this story, and every other one you hear with your friends, family, colleagues, and community.  Knowledge and awareness are our most powerful tools in this fight.  By spreading the word, you can play a crucial role in encouraging more victims to come forward, until there are no more victims.