Suspicion of investment fraud? Read this blog!
Date: | Week 20 | Reading time: 7 minutes | Updated: Author: Simcha Schrijver
In short
A suspicion of investment fraud usually starts with doubt: it looks fine on paper, but something does not feel right. Signs such as unexpected contact, returns that seem too good, pressure to top up and withdrawals that fail can point to fraud, but do not prove it. You only get clarity when someone independently looks at the platform and the money trail.
Paucitas is an independent expert firm in the Netherlands that investigates investment fraud and crypto fraud, in hundreds of cases a year. Sometimes an investment turns out to be fine, sometimes the investigation confirms the doubt. Either way, you know where you stand afterwards.
Get in touch with Paucitas or ring +31 20 244 5774. A free intake is without obligation, even if you only have doubts.
In a nutshell
Doubt is often the first and most reliable sign. It is best not to top up any more; keep everything and let Paucitas take a calm look before you take further steps.
"I have invested in something. On paper it is doing fine, but I am starting to have doubts." That is how many of our conversations begin.
That doubt is valuable. It is exactly the moment when a second pair of eyes makes the most difference. This blog helps you weigh the signs and shows what is best to do now.
When is there a suspicion of investment fraud?
Investment fraud is a scam in which you put money into an investment that does not exist or is not what was promised. It can involve shares, bonds, a fund or, more and more often, crypto. The firm often uses a name that sounds like an existing, reputable firm abroad.
The pattern is almost always the same: first trust and visible "profit", then pressure to invest more. The FCA Warning List shows how many unauthorised firms are active. Many victims never report it, often out of embarrassment. So you are certainly not the only one.
Which 7 signs can point to investment fraud?
No single sign proves anything, but if you recognise several, be extra careful:
- Unexpected contact, for example a call after an advert or a form you once filled in.
- Quick, high returns that seem too good to be true.
- Pressure to decide now: the offer is only valid today or only for you.
- Celebrities in the advert, without their permission.
- Claims of regulatory approval, such as "FCA approved" for a specific product.
- Starting small, then investing more and more.
- A withdrawal that fails unless you first pay "tax", a "release fee" or "compliance costs".
The modern version is rarely a pushy salesman. There are portals with log-ins, monthly statements and a friendly account manager. This approach is also known as a boiler room. Business owners, doctors and people with healthy scepticism are approached this way. Does anything sound familiar? Let Paucitas take a look or ring +31 20 244 5774, 24/7.
What should you do if you suspect investment fraud?
A few things are always sensible, whatever the outcome:
- It is best not to pay anything more. Not even for a final "release", "tax" or "fine".
- Keep everything: messages, screenshots, names, web addresses, amounts and bank statements.
- Give nobody access to your computer, your recovery phrase or your wallet.
- Have the situation assessed independently before you take further steps.
Paucitas then maps the facts for you. The report shows whether money is still available, or where it went, and what the next steps are. If it is a scam, reporting it to Report Fraud (or to Police Scotland if you live in Scotland) is one of those steps, and the Paucitas report is then a strong attachment that sets everything out fully and clearly.
An example from practice
A GP was rung by an "account manager" from a Swiss-sounding wealth manager. The portal looked polished, and so did the monthly statements. After eighteen months he wanted to withdraw part of it. That was only possible after paying "compliance costs".
He rang Paucitas before paying. We looked at the communication, how the portal was set up and the route of his deposits. The picture was clear enough not to pay any more. With our report he reported it to the police and discussed with his solicitor which steps were realistic.
Paucitas takes privacy very seriously and never shares clients' personal details. This is a composite example: names, amounts and details have been changed. The situation is one we see in practice.
Who investigates a suspicion of investment fraud?
Investment fraud now runs through crypto, foreign companies and payment flows across several countries. A friend, accountant or bank employee can look with the best intentions, but often lacks sight of that chain.
Paucitas establishes the facts: how the platform is set up and the transactions. We also go through all conversations, documents, emails and other communication, so that a complete picture emerges, with a timeline and where all the money went, step by step. Paucitas does all tracing itself, without tracing tools. You receive a report that anyone can follow and understand step by step, usable for a police report, proceedings or a counter-expertise. Sometimes the outcome is a relief, sometimes it is difficult. But it is always better than guessing. More in crypto fraud investigation.
What if the money already seems to be gone?
Even then an investigation makes sense. Paucitas maps where the money went and records it in a report that shows what the next steps are. What is possible after that depends on what the investigation shows. Be wary of firms that approach you after a loss and promise to recover your money for an upfront fee: that is often a recovery scam, and the FCA warns about them.
What can you provide and what can you expect?
You can send documents digitally or bring them to our office in Amsterdam. For each case you receive a short list of what is needed, and where necessary we help you gather it.
- Costs: every investigation is tailored. You receive a bespoke quote in advance, which we go through together, so there are no surprises.
- Turnaround: from the same day to around two weeks.
- Contact: you can ring at any time, 24/7. We answer the form within 1 to 3 hours, and email within 24 hours, usually the same day.
Do you have doubts about an investment, or can you no longer withdraw? Get in touch for a no-obligation introduction, or ring +31 20 244 5774. The sooner we look, the more traces remain. Already been scammed? Also read where to turn.
Sources: FCA Warning List; FCA Financial Services Register; FCA, recovery room scams; Report Fraud; Police Scotland, scams and frauds.
Do you have questions about this blog?
Feel free to get in touch with Paucitas. Paucitas can be reached by phone 24/7, including evenings and weekends. Through the contact form we usually reply within 1 to 3 hours, and we answer e-mail within 24 hours.
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Frequently asked questions about a suspicion of investment fraud
When is there a suspicion of investment fraud?
Paucitas speaks of a suspicion when you doubt whether an investment or platform is genuine. Signs include unexpected contact, returns that seem too good, pressure to invest more quickly and withdrawals that are blocked or require an upfront payment.
What should I do if I doubt a platform is trustworthy?
Paucitas advises: stop investing for now, do not pay any "release fees" and keep all messages and statements. Then have the situation assessed independently, so you act on facts rather than pressure.
Can I get my money back after investment fraud?
Paucitas: that depends on your situation. If you still have access to your own wallet or account holding funds, there may still be options. If everything has been sent to the fraudsters, the picture is different. That cannot be judged from a distance. Paucitas first looks at your situation and tells you honestly what is and is not possible. Be careful with anyone who promises in advance that your money will come back. In doubt? Contact Paucitas and you will know where you stand.
What is the difference between investment fraud and a crypto scam?
Paucitas explains: with investment fraud you put money into an investment that does not exist or is not genuine. A crypto scam is broader and includes romance scams, for example. If the fake investment is in crypto, it is both.
What does an investigation into suspected investment fraud cost?
Paucitas tailors every investigation. You receive a bespoke quote in advance, which we go through together, with no surprises. The intake is free.
From Amsterdam, for the whole of the UK
Everything can be done fully online. Prefer to meet in person? You are very welcome at our office in Amsterdam, by appointment.
Paucitas is an independent expert firm based in the Netherlands that, for clients across the UK, investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.