7 tips to protect your money from fraudsters

Have you ever seen an ad appear or land in your email where famous personalities are promoting an investment that promises quick profits? Or have you ended up on a fake payment site while shopping online without realizing it? Lately I have been receiving more and more calls from dubious mobile phone numbers that do not answer when I call back. And by that I don’t mean the almost mandatory calls to audit and change health insurers.

Stolen images of famous personalities, fake websites, false promises… The fraud methods are now very sophisticated. The number of questions from those affected to consumer protection organizations is increasing (Experience report on cash register collapse). Here’s what you need to know about this topic and some simple tips on how to protect your money from fraud.

The internet and new technologies make it easier for fraudsters. Especially in the wake of the Corona pandemic, new opportunities for fraudulent activities emerged. According to the “KPMG Forensic Fraud Barometer”, Swiss courts handled 78 cases of white-collar crime in 2022, where the amount of the offense was at least CHF 50,000. An increase of 15% compared to last year. Private individuals were affected in more than half of the cases. The total damage amounted to 581 million francs.

Digital crime is increasing. According to the BFS (2022). 33,345 crimes with a so-called digital component were registered, an increase of 9.9%. The majority of these concern cases of cyber-economic crime: phishing (+84.8%), sextorsion (money) (+54.0%) and Online investment fraud (+29.2%).

Older people in particular seem to be the target: according to research by Senectute in recent years 80% of people over 55 will experience attempted fraud. False Internet advertising, alleged computer infection, online payment fraud, phishing, billing for unordered goods are just a few examples.

There are different types of financial fraud, here are just a few examples:

You are promised your invested capital quickly and often with little or manageable risk. The facility is often advertised with fake or stolen images of famous personalities. This is often the case The starting amount is relatively small, for example 250 francs. The investment also seems to work, the system is growing. In some cases, you can even get small amounts back initially to encourage you to invest more.

Psychological manipulation is used to convince those affected to invest even more. Then it’s about the reference, Money is asked for all kinds of nonsense such as taxes, fees, advances. The referral never happens. The so-called broker disappears from the scene and can no longer be reached. Or the investment suddenly makes a loss and the money apparently runs out. The highlight is: your money is never invested. The criminals simply enrich themselves with the money they continually take from people.

You receive fake emails or text messages claiming to be from a bank or other financial institution you will be asked to provide your personal information. This allows fraudsters to gain access to your accounts and steal your money.

You will find one in the online shop Redirected to wrong payment page. This looks trustworthy and genuine and reveals your personal information. The fraudsters use these to empty your account or charge your credit card.

The scammers pretend to be the heir to a fortune or have won the lottery and ask you to help them get the payout and share in the winnings. Of course, you have to pay a fee or advance in advance to get the money.

Fraudsters use a fake profile and contact their victims via internet platforms or social media. Messages go back and forth, and the cheating person soon claims to have fallen in love. If the victim accepts this, they are lulled to sleep until they actually fall in love, often in a mirage. The alleged love affair is built up over weeks and months and plans for the future are made.

Shortly before a real meeting takes place, this happens: The fraudulent person pretends to be exposed to an event that requires money, for example an accident, a robbery or some other easily explained emergency. The victim is asked to reimburse treatment, travel or other costs and to transfer money, often to an account abroad. New problems and obstacles continue to arise when the victim is asked to pay money until the fraudulent person makes off with a significant amount of money.

Financial fraud can affect us all. This is how you can protect yourself:

Unfortunately, financial fraud is becoming increasingly common. Often those affected do not report at all or report too late out of shame.

Your alarm bells should definitely be ringingwhen the investment promises a big return quickly, you are emotionally kept on the hook or pressured with sales tactics, you are asked to pay extra or pay extra, and there is a lot of blatant advertising.

It is better to look twice and report any suspicions or fraud to the police or the reporting point for private individuals at FINMA.

Have you ever encountered financial fraudsters and how do you protect your money?💰