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You’re going about your day, checking your emails, and suddenly you see an enticing investment opportunity. It looks legitimate, complete with a professional website and official-looking documentation. This is how Graeme, a seasoned investor, found himself ensnared in an international share investment scam, losing over $20,000.
However, the story doesn’t end there. Sadly, his initial loss was just the beginning of a much more insidious scam cycle. There's a particularly cruel type of scam out there where victims are targeted again, with false promises of recovering their lost money.
First reported by New Zealand’s Financial Markets Authority, this story will stir your emotions as it reveals how scammers kept coming after one person, refusing to let go. Brace yourself for a rollercoaster of empathy and frustration as you witness the unrelenting harassment of a victim by merciless fraudsters.
Graeme, with his background in investments and shares in several companies, received an email about investing in a Scandinavian firm. Intrigued, he started with a $5,000 investment. The setup was remarkably convincing.
"It was all set up very convincingly," Graeme recalls. "I found out later that everything online was fake—the directors, the offices, everything. We had some spare cash, and I had filled out a questionnaire about my investment interests."
As time went on, his shares were transferred to a supposed Chinese company, and the pressure from the fake brokers grew. Persuaded to invest more, Graeme put in an additional $20,000. It wasn’t until the relentless push to buy even more shares that Graeme’s suspicions were confirmed. He had been scammed. Deciding enough was enough, he cut off all contact with the bogus brokers.
"I had to suck it up and move on," he said.
Just when Graeme thought he could put the ordeal behind him and focus on local brokers, a new wave of scams hit. His information had been sold to another group of crooks who specialized in 'recovery scams.' These scammers target people who've already been duped, offering false promises of helping them get their money back.
Out of the blue, Graeme started receiving calls and emails from people claiming they could help recover his lost funds. These scammers had detailed information about his initial investment, indicating they were linked to the original fraudsters.
The recovery scams came in many flavors. In one case, the scammers offered to include him in a class action lawsuit against the original company if he paid a fee. Another scam involved a supposed US government agency working with a law firm to retrieve his money.
Graeme has some advice: "If anyone from overseas contacts you, don't engage. Stick with local, licensed providers for your investments. No one from abroad is going to get your money back—it’s just a way to lose even more. Don’t agree to pay anyone upfront to recover your funds."
Recovery scams are a type of 'advance fee' scam where victims are asked to pay upfront for the promise of getting their lost money back. The scammers often pose as authorities or official agencies, making enticing promises before requesting a fee to proceed.
You will find them on social media or on review websites with compelling stories claiming how certain people or companies helped them recover their funds. They then proceed to give contact details, usually in a distorted manner to evade detection and being weeded out.
Example of a recovery scam comment. Never reach out to such people or businesses, it's likely a recovery scam
These scams can involve hiring a so-called recovery agent or joining a class action lawsuit, both requiring upfront payments. Recently, the Financial Markets Authority (FMA) warned about individuals posing as workers for the UK's Financial Conduct Authority, targeting victims with similar schemes.
The takeaway: Be very cautious of anyone offering to help recover lost funds, especially if they ask for money upfront. Always check the legitimacy of any such offers and work with local, trusted providers. Graeme’s experience is a stark reminder of how one scam can lead to a cycle of crime attempts by well-connected and coordinated scammers. You can read more on our article on how to get your money back from scammers for more insights.
Keep your wits and stay safe!
Image Source: Unsplash.com
