Alert on Deceptive Practices in Digital Stock Markets
The Lübeck Criminal Police have issued a warning against investment fraud on online trading platforms, following a surge in reported cases. Since the beginning of 2024, over 100 fraud cases have been handled by the District Criminal Inspectorate's Commission 3 in Lübeck.
Identifying Investment Fraud
Fraudsters often target private individuals using emails, social media advertising, or private messengers. They pose as financial experts and promise unusually high returns, which should raise suspicion. Be wary of platforms that guarantee such outcomes, as legitimate investments typically do not.
Another red flag is unsolicited contact, especially those that create a sense of urgency or require secrecy. Fraudsters may also operate on platforms that lack transparency, offering little information about their operations, management, or regulatory compliance.
Protecting Against Investment Fraud
To protect yourself against investment fraud, follow these best practices:
Best Practices
- Research and Verification: Before investing, thoroughly research the platform and verify its legitimacy. Check for regulatory compliance and reviews from reputable sources.
- Use Secure Platforms: Use only trusted and regulated online trading platforms. Ensure the platform provides strong security measures, such as two-factor authentication and encryption.
- Protect Your Information: Enable all available security features for your accounts, including face and voice recognition if available. Never share financial or personal information via unsecured channels.
- Stay Informed: Stay updated on common scam types and new threats. Regularly check for updates from financial authorities and consumer protection agencies.
- Customer Education: Spread awareness about investment scams among friends and family. Encourage others to report suspicious activities to the relevant authorities.
Additional Tips for Cryptocurrency
For those investing in cryptocurrency, additional tips include using secure wallets for long-term holdings and thoroughly verifying exchanges before investing.
When victims request a withdrawal of their supposed winnings, further payments for "taxes" or "fees" are demanded but no money is returned. Remote access software is often used, allowing fraudsters direct access to the victim's devices.
To learn more about safe investments and fraud protection, visit www.polizei-beratung.de. The BaFin company search can be found under BaFin Unternehmenssuche for further safety measures.
The Lübeck Criminal Police advise against engaging in telephone recommendations or contacts via messenger services. A free social media package for awareness can be downloaded: Social-Media-Paket.
Damages per case often range between 5,000 euros and over 100,000 euros. By following these guidelines, you can significantly reduce your risk of falling victim to investment fraud on online trading platforms.
- Suspicious investment offers promising unusually high returns could potentially be a form of finance fraud, especially if they are received through emails, social media advertising, or private messengers. Legitimate investments do not typically guarantee such outcomes.
- To safeguard yourself against investment fraud, it's crucial to verify the legitimacy of platforms before investing, use secure online trading platforms, protect your information, stay informed about common scam types, educate others about investment scams, and carry out extra precautions when dealing with cryptocurrency, such as using secure wallets and verifying exchanges thoroughly.
