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He was so sure that the great victory would pay off in the end. Hans-Walter G.* signed an online investment contract that yielded an incredible return of 23 percent. “I doubled my assets in a short time,” the 63-year-old actor said. “I couldn’t stand it.”
Despite this seemingly absurd number, the early retiree was not suspicious. Because the provider managed to gain G’s trust in a short time. “He called me shortly after I signed up and always seemed extremely competent,” she says. And he didn’t feel any pressure, not even for a moment. “The advisor even suggested I invest a smaller amount initially, just to try it out.”
Money increased rapidly but…
G. deposited 250 francs and gained access to his “account”. From then on, he constantly checked the performance and noticed that his money was increasing rapidly. To celebrate his lucrative new investment, he decided to withdraw the first small profit from the account to take his new partner out to dinner. This worked without any problems. G. decided to invest more extensively that same evening.
But this is where the nightmare began. According to the information in his account, high investments initially increased rapidly. Many conversations with the counselor also led G. to believe that everything was fine. “It gave me a good feeling. It was easy for me to invest additional amounts.”
But when G. wanted to withdraw the next amount to go on vacation with his girlfriend, this was no longer possible. He immediately contacted his advisor. This informed him that a sudden collapse had occurred and that profits could only be secured by injecting additional money. G. found this extremely strange and suddenly didn’t trust him so much anymore. But thanks to his calm and realistic attitude, the consultant’s boss finally convinced G. to stick with it, because after this short crisis, success would definitely return.
But in the end, nothing came of it. At some point the situation became clear: it turned out that the money (almost 20,000 francs) was lost. G. was the victim of an online investment scam.
Many are ashamed to admit cheating
This is not an isolated case, as Tanja Fuchs, head of the economic crime investigation department of the Zurich Cantonal Police, confirms: “This type of fraud has been on the rise for some time. Already in 2022, over 240 cases have been recorded in the canton of Zurich. But the number of unreported cases is likely to be very high,” says the expert. “Many victims do not report the scam.”
Problem: Many victims are embarrassed to admit that they fell victim to scammers and lost sometimes large amounts of money; because the offers are so obviously fraudulent that many do not even realize how easily they are fooled by them. Fabian Ilg, managing director of Swiss Crime Prevention, explains: “At first glance, everyone probably has the feeling: This will not happen to me.” “However, in periods when generally uncertain economic and stock market conditions prevail, it has become difficult to secure, let alone increase, the acquired assets. That is why many investors are increasingly looking for new forms of investment that promise high returns even in times of crisis, such as cryptocurrencies. But when it comes to insider tips and promises of high returns, your alarm bells should be ringing,” warns Ilg. “This definitely smacks of fraud.”
This is how investment scams usually work
Beatrice Kübli, project manager focusing on cybercrime at Swiss Crime Prevention, explains that why these offers usually work is due to the same principle that encourages many people to play the lottery: “The chances of winning are extremely low. And yet everyone hopes for the big jackpot. The same is true for high returns.” “You know it’s unrealistic, but you still want to believe it. The only difference is that in this type of investment, unlike the lottery, there is no chance of winning anything.”
Finally, the scammers’ treacherous modus operandi allows even skeptical investors to fall into the trap. Teasing often occurs through pervasive advertising flashing with seemingly attractive, quick offers; Supposed quotes from celebrities are also included to further support the alleged seriousness. “This is all nonsense,” says the prevention expert. “Celebrities never reveal their investment tips in front of microphones and cameras, neither intentionally nor accidentally.”
Many online criminals are also skilled in what is called social engineering. This represents a particularly insidious form of manipulation. “It aims to encourage people to disclose confidential data or make bold decisions,” explains Kübli. “Goodwill, willingness to help, respect or distrust of authority, in short, basic trust in other people, are cleverly exploited psychologically.”
Alarm bells should always ring when returns are high
Scammers assume that the other person may still have a certain amount of skepticism and therefore only offer smaller amounts of money to try, so to speak. “You are made to believe that you can make honest and free decisions,” says Kübli. “As a result, investors find that the amount invested has increased significantly, which persuades many to invest more.”
The trick of withdrawing a small amount once is ultimately the key to gaining the trust of unsuspecting investors. “If this were not possible, the victim would most likely quickly realize that something was wrong,” says the expert. “But the criminals want a large amount of money to be deposited before the matter is revealed. That’s why they pay smaller amounts in the beginning.”
So how can you protect yourself against this particularly unscrupulous type of fraud? “The only precaution to be taken here is a healthy level of distrust,” says Beatrice Kübli. “Especially towards people you only know online.” Tanja Fuchs recommends investing only if you know exactly what you are investing in. “Talk to your trusted banking advisor, because high returns are often attractive and too good to be true, and you’re often dealing with scammers.”
If you are currently unsure whether you are a victim of online investment fraud, you can contact the Swiss Crime Prevention experts (see box). Expert Kübli underlines that anyone who has previously complained about a fraud case should definitely report it to the police. “This is really important! “An investigation can only be done through a report. Even without an investigation, criminals can act freely and do evil.”
*Name changed
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
