Investment fraud comes in many varieties, but in principle it always follows the same scheme. It is important for the interested investor to recognize these schemes of investment fraud in order to avoid becoming the victim of investment fraud himself.
Investment fraud scheme: always the same steps
The investment fraudsters always use the same methodical approach to carry out the investment fraud. It does not matter whether the contact is initiated by telephone or face-to-face. However, due to the ever-spreading investment fraud on the Internet, the analog, personal contact is more and more the exception. Often the potential investor responds to an advertisement of the fraudster on the Internet and is then called.
Investment fraud scheme: Excellent psychologists at work
The first step is to build trust. This is not so easy when you can't even see your counterpart. After all, up to 80% of communication is body language. Only 20% is tonality and words. The investment scammer, on the other end of the phone, must therefore have exceptionally good psychological skills in order to use this remaining 20% to extract money from his victim's pocket - and often in the six-figure or even seven-figure range.
Investment fraud scheme: Rapport with established
The trust is built in the so-called rapport. The investment fraudster tries to find common ground with his victim. These can be places and events that both know.
Investment fraud scheme: Investment fraudster uses speech pattern
The investment scammer will also try to put his victim in the right mood by a clever use of speech patterns, so that he will seek his great fortune in the investment scammer's offer.
Investment fraud scheme: the search for the weak points
The investment fraudster tries to look for and exploit the weak points of his target. How important is the wealth that beckons the victim as a result of the investment fraudster's offer? What values are important to the victim? What is behind the desire to have money and become rich?
Investment fraud scheme: the victim is fed
According to the scheme of capital investment fraud, the investor should first invest only a small sum. Of course, the investor gets his money back. He is “fed” and thus gets confidence in the investment fraudster, who can thus prove himself as a serious and trustworthy business partner.
Investment fraud scheme: more and more money is invested
The victim of an investment scam is now ready to invest even higher sums. He sees his assets growing by leaps and bounds with compound interest. Could there be a better reason to invest even more? This creates the boiler room atmosphere that investors cannot escape.
Investment fraud scheme: Investor wants his money back!
Now comes the most important point of the investment fraud scheme. The investor wants his money back. For the investment fraudster, now comes the time when he must change his strategy. He must stall for time, postpone the repayment and still suck as much money as possible from his victim.
Investment fraud scheme: one last payment, or it's all gone
Now, the "pull away principle" is applied. The investment fraudster explains to his victim that, unfortunately, he will not get anything at all if he does put in another sum of money. Usually, it is explained that taxes still have to be paid before the money can be paid back to the victim. But even if the victim makes further payments, new reasons are always invented as to why he must add more before the money can be transferred to him. The investment fraudster tries to squeeze every last penny out of his victim until the investor realizes that he has fallen for an investment fraud scheme. At this point, the contact is broken off. For the investment fraudster, the victim has become worthless.
Investment fraud scheme: Investors in shock
For investors, the realization that they have been the victim of investment fraud is a shock that can trigger anger and despair, but also fear and depression. Many remain in a state of shock and do nothing. Some report the capital investment fraud to the police, failing to realize that the criminal charges will not result in getting his money back.
Investment fraud scheme: how investor gets his money back?
Help with this scheme of capital investment fraud will only be able to provide real experts. What help is there? It is necessary to follow the money trail. What to do in case of investment fraud? In the combination of civil and criminal claims, it is often possible to help the victims of the capital investment fraud and get their money back.
RESCH Rechtsanwälte - Experience in investor protection since 1986
If you have been a victim of investment fraud according to the above scheme you will need a lawyer specialized in investment fraud. Because you want to know if and how you can get your money back, call +49 30 885 9770 or fill out the contact form. You will receive a free assessment of your case.
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