Social media can be a window onto the world, but unfortunately it can also be a gateway for fraudsters. Investment scams are increasingly flooding our feeds, often targeting users with the promise of easy money, particularly in the form of crypto scams. Ads promoting miracle investments appear on Instagram, Snapchat, Facebook and YouTube.
But behind these ads lies a darker reality: investment fraud. It often starts with a modest deposit and the claim that your money could quickly multiply. However, these tempting promises are usually part of a carefully crafted scam.
So how can you spot an investment scam and avoid becoming a victim? Here is your essential guide.
The illusion of easy money
Investment fraud often presents itself as a golden opportunity, a once-in-a-lifetime offer. These so-called ‘deals of the century’ promise phenomenal returns, supposedly multiplying your funds in record time. But remember this golden rule: if the return seems too good to be true, it is almost certainly a scam.
Some fraudsters may even reward your initial investment with a generous bonus to gain your trust, only to persuade you to invest more and ultimately lose everything.
New scam techniques you must know about
Scammers are constantly adapting. Here are some of the most common and dangerous techniques today:
- Fake celebrity endorsements and media articles
On social media, scammers use doctored articles, interviews and fake videos featuring well-known figures like Jamel Debbouze, Francis Cabrel or Vincent Cassel to promote ‘miracle’ investment tips. If a sensational headline promises that a celebrity has revealed a secret path to wealth, steer clear.
- Fake exclusive advice via WhatsApp or Telegram
You may see an ad inviting you to join a ‘free’ group that shares exclusive financial advice. But the real aim is to steal your personal data and trick you into investing in fake crypto products. These tactics also appear on dating sites, where the conversation quickly turns to investment opportunities. This is a typical WhatsApp scam and is sometimes part of a broader WhatsApp phishing attempt.
- Boiler room scams
This involves persistent phone calls urging you to buy shares that are ‘about to explode’. Victims are pressured to invest larger and larger sums, only to receive worthless shares in return. These are classic boiler room scams.
- Recovery room scams
In this type of investment fraud, scammers target people who have already been defrauded. They claim to help you recover your lost money in exchange for bogus ‘administrative fees’ or by accessing your computer via remote desktop software. If anyone asks you to pay in advance to recover lost funds, it is a recovery room scam.
Warning signs to watch out for
Keep these red flags in mind:
- Promises of fast, guaranteed returns
- An initial profit to lure you into investing more
- Persistent messages via phone, email, SMS, or fake WhatsApp tips
- Requests for payments to foreign accounts or in cryptocurrency
- Use of a bank or media logo without official links
- Threats or guilt-tripping if you try to back out
Golden rule: if it sounds too good to be true, it probably is.
How to avoid falling for fake investments
To stay safe, here are 4 essential precautions:
1. Be wary of pressure tactics
If you’re being contacted non-stop via phone, email or WhatsApp, be vigilant and don’t let yourself be persuaded.
2. Question everything
Does the return sound too good to be true? Then it probably is. Ask clear questions and demand clear answers. Would you really trust a stranger with your savings?
3. Check who you’re dealing with
Always verify that the company is legitimate. The Financial Services and Markets Authority (FSMA) website can help you identify fraudulent platforms. If you can’t find reliable information, walk away.
4. Visit Safeonweb
The official Belgian cybersecurity website offers valuable advice and alerts. It can help you to identify scams, test your knowledge and stay protected online.
For more information, visit the Febelfin website. You’ll also find a video based on real-life cases.
Have you already fallen victim to a scam? Act now.
1. Stop paying and cut off all contact.
2. Contact us now and speak with a fraud recovery specialist.
3. Report the crime to your local police as soon as possible.
The key to protection? Knowledge and vigilance
In summary, investment scams are becoming increasingly common: recovery room scams, boiler room scams, fake celebrity endorsements, WhatsApp fraud groups, and more. Your best protection lies in staying alert, thinking critically and understanding how these scams work.
Never forget: if a financial opportunity seems too good to be true – it almost certainly is.
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