Beware of Fake Investment Offers
Investing is one of the best ways to protect your money from losing value over time. Unfortunately, scammers are aware of this, which is why they prey on people looking for safe and profitable investments.
TL;DR
Fake investment offers promise safe, risk-free and high profit, while the true goal is to steal your savings. Some of the most common signs of a fake investment opportunity are:
- No formal contract is provided.
- The offer starts with an online advertisement.
- You are asked to send money to a special investment account or to download an app that gives the scammers access to your device.
- You are asked to lie to your bank about the reason for depositing your money into their account.
- You must pay extra fees or taxes before withdrawing money, which were not mentioned beforehand.
Common signs of a fake investment offer
While these scams try to look as innocent as possible and often even create websites that seem legitimate, there are a few signs that the investment you are about to make is fake.
Using well known faces
Scammers use photos of celebrities, rich people, or famous brands to make their scams look real. For example, one trick used a fake image of Elon Musk and Tesla company to trick people into scanning a QR code, that sends them to a scam website instead.
No contract
If someone claims there is no need for a contract, you should always be wary. Any legitimate investment involves clear documentation outlining terms, risks, and responsibilities. Never trust someone with your money if they refuse to put things in writing.
It starts with an online advertisement
Not every investment advertised online is a scam, however almost half of fake investment schemes begin this way. They often appear on social media or search engines with promises of fast profits or passive income.
In the image below, you can see an advertisement on Facebook that uses the face of Czech billionaire and Prime Minister Andrej Babiš to promote an investment scam.
Being told to lie to your bank
This is one of the strongest warning signs. Scammers often instruct victims to provide false reasons for transfers if the bank asks. Banks are not trying to stop legitimate investments. They are trying to protect you. If someone tells you to lie, it is almost certainly a scam.
Small initial deposit
Scammers rarely ask for a large sum right away. Instead, they start with a relatively small amount, around 5,000 to 10,000 CZK, to lower your guard. Once trust is established, they gradually ask for more money, additional deposits, or unexpected fees.
The image shows a claim that you can earn up to 120,000 Czech Crowns a month by investing just 6,100 Czech Crowns. The scam is hosted on a suspiciously named website.
Fees required to withdraw money
Victims are often told that before withdrawing profits, they must pay additional fees, commissions, or taxes that were not discussed beforehand. These payments never end, and once the money is sent, the scammers disappear.
Requests to send money or install software
You may be asked to transfer money to a special investment account or install an app that supposedly allows you to monitor your investment. In reality, these apps may give scammers remote access to your device or banking details.
What to do if you encounter a suspicious investment
If you come across an investment opportunity that raises doubts, slow down and think about your next steps carefully. Acting quickly is exactly what scammers want.
- Take time to think - Pressure, urgency, or secrecy are strong warning signs.
- Do not send any money - Never transfer funds unless you are confident the investment is legitimate.
- Do not install unknown apps - Software recommended by scammers may compromise your device and accounts.
- Verify the company - These investments often pretend to come from sources you are familiar with, verify through official websites whether they truly are who they claim to be.
- Talk to someone - If they claim to be from a trustworthy source - for example, a bank - clarifying with the source directly might be your best option. Even if not, contacting your bank might help determine whether you can trust them.
Why these scams work
Fake investment scams are effective because they carefully manipulate trust and emotions. They usually combine:
- Professional-looking websites
- Friendly and convincing communication
- Fear of missing out on a limited opportunity
- Gradual trust-building instead of immediate theft Rather than stealing everything at once, scammers slowly guide victims deeper into the scheme until the loss becomes significant.
The image below shows a fake version of the news site novinky.cz , with a fake article promoting a scam.
What to do if you have fallen victim
If you believe you have already been scammed, act immediately:
- Contact your bank - The sooner you act, the higher the chance of stopping or recovering the transfer.
- Change your passwords - In case the scammers have gained access to your accounts, change all passwords for affected accounts immediately.
- Report the scam - Reporting the scam to your bank, police, relevant financial authority, or platform where you saw the advertisement might not only help you, but also others.
Final Recommendations for Your Safety
- Stay informed! Read our blog and follow alerts in the app about the latest threats we’re monitoring for you.
- Our app Redamp.io includes a Safe Surfing feature that effectively handles protection against the latest threats such as phishing or malware.