How to watch out for investment fraud
A short guide on how to spot potential fraudsters putting your investments at risk.
Here at Nuri it’s important to us that we keep our customers and their funds safe. Here is a short guide on how to spot potential fraudsters and what you can do to mitigate putting you and your investments at risk.
How to spot potential fraudsters?
Too good to be true
As the old age saying goes, if it looks too good to be true then it probably is. Fraudsters often do a great job of reeling people in with their promise of helping you create huge returns on investments that will run relatively small risks. As tempting as it can be to commit to an investment that promises you large returns overnight, chances are it's a scam. However, there are ways and means of mitigating the risk. More information on this later.
Social media platforms remain a popular way for scammers to reach out to potential victims (Facebook, Instagram etc.) and entice people in with their amazing investment opportunities. Any reputable broker would reach out to a potential customer using their work email address which would include their domain. More often than not, anyone reaching out to you via social media with investment advice/opportunities should not be trusted.
Sometimes the fraudster may ask you to share your screen using platforms such as Anydesk or TeamViewer. They’ll often cite reasons such as it will make the registration process easier for you or they can show you how to use the account more efficiently. Sharing your screen using such platforms grants the fraudsters access to your account and your funds. This can even allow them to lock you out of your own account. Never share your screen or account details with anyone. This puts you at great risk.
So you decided to invest, and now your 'broker' informs you that you made a huge profit. You'd like to get it paid out, but all of a sudden, you have to pay a fee. The fraudsters can disguise this unexpected payment as a broker fee, or taxes. Somehow, they failed to mention this extra payment to you before and you find yourself asking why they can't withhold it from your profit. At other times you’ll also be told that you need to pay an extra fee in order to increase your trading limits.
You’ll often find that the communication from the fraudster will be pushy and forceful with them subjecting you to time pressure. A legitimate broker would never force you to make a financial decision and pressure you to invest. They would take the time to present the potential risks and outcomes in a neutral manner whilst also addressing any concerns you may have.
How to mitigate the risk?
- Always check the email address, this is often one of the best ways to identify a fraudulent investment company (eg. email@example.com - a legitimate company will have their own domain and not use gmail, protonmail etc.)
- Always conduct a web search of the investment company that has contacted you ending the web search with the word ‘review’. You can also use the following words to help narrow down your search - scam, safe, legit, fake, fraudulent
- Warnings can also be found online issued from the BaFin.
- The Financial Conduct Authority has created a helpful scam checker which can be found HERE.
Some things to note regarding Nuri
We will never provide you with investment advice. This is something we do not offer, nor are we licensed to do so. We also do not have a sales department.
Any contact that you receive from us will be through email addresses using our own domain which end in @nuri.com. We will never reach out to you via Whatsapp, Facebook, Instagram or other social media platforms asking you to open an account with us or invest.
We do not apply withdrawal fees for FIAT transactions and we will never, ever ask you to provide us with your login details. These are yours and yours alone.
We do not pay taxes for you nor will we reach out to you asking you to pay taxes on your investments. This responsibility lies solely with the customer.
We hope that this information is helpful to you. However, if you are worried and think you may have already been a victim of a scam please do not hesitate to get in touch with us at firstname.lastname@example.org and we will be happy to support you in whatever way we can. Should you be even uncertain as to whether you may have fallen for an investment scam, please feel free to reach out to us. You will be connected to an experienced agent who will be able to address your concerns and provide you with the support and advice that you need. Your account safety is our top priority and we’re here to help.