13 november 2024 — 3 min read
At Xe, we’re committed to helping you make safe and secure money transfers. Investment scams are a growing threat, often disguised as “too-good-to-be-true” opportunities that can deceive even the most careful investors. Here’s what to watch out for, along with some practical tips to protect yourself.
These scams promise high returns with little risk, but they use money from new investors to pay returns to earlier ones. Eventually, when new investments stop, the scheme collapses, leaving investors with losses.
In these schemes, earnings come from recruiting new investors rather than a real product or service. They often require participants to bring others into the fold, creating a cycle that is unsustainable and bound to collapse.
Fraudsters can create realistic-looking websites or apps that appear to be genuine trading or investment platforms. They may even show fake portfolios or returns to build trust before disappearing with investors' money.
These scams target individuals who have already lost money, offering to “recover” their funds—for an upfront fee. Scammers might pose as government agents, lawyers, or representatives of fraud protection agencies to make their offer seem credible.
Protecting yourself from scams starts with awareness and caution. Here are a few essential tips:
Thoroughly research before investing: Take time to investigate any investment opportunity, researching the company’s track record, reading reviews, and verifying licenses.
Be skeptical of high returns with low risk: If an investment sounds too good to be true, it probably is. Real investments carry risks; be cautious of anyone promising guaranteed profits.
Verify credentials of platforms and professionals: Ensure any platform or professional you work with is registered with the appropriate financial authorities in your region.
Beware of unsolicited offers and recovery services: Legitimate organizations will never ask for money upfront to help you recover lost funds. Always verify the authenticity of any recovery service.
Staying informed is key to protecting your money. Depending on where you are located, you can find reliable information and support through the following organizations:
Action Fraud: National Fraud & Cyber Crime Reporting Centre
Financial Conduct Authority (FCA): Regulates financial firms in the UK
Citizens Advice: Scams Action Service for consumer protection
European Consumer Centres Network (ECC-Net): Assistance with cross-border consumer issues
European Banking Authority (EBA): EU banking regulatory agency
Federal Trade Commission (FTC): Consumer protection information
Securities and Exchange Commission (SEC): Investor alerts and resources
Canadian Anti-Fraud Centre: National anti-fraud agency
Canadian Securities Administrators (CSA): Protects investors through securities regulation
ACCC Scamwatch: Australian consumer protection
Australian Cyber Security Centre (ACSC): Cyber safety resources
Consumer Protection New Zealand: Consumer rights and safety
Financial Markets Authority (FMA): Regulates New Zealand's financial markets
Fraudsters are constantly evolving their tactics. By staying informed and taking steps to verify the legitimacy of any investment opportunity, you can avoid falling victim to scams. Remember, if something feels off or seems too good to be true, take a step back and do your research.
If you have any concerns about potential scams or need assistance with safeguarding your transactions, our team is here to help. Visit our Help Centre to reach out, and we’ll be happy to provide guidance and support.
19 januari 2023 — 8 min read
18 januari 2023 — 8 min read
18 december 2020 — 8 min read
2 december 2020 — 8 min read
16 november 2020 — 8 min read
13 november 2020 — 6 min read