Summary
This article explains what investment fraud is and how you can recognize it. We describe the warning signs that may indicate fraud and how to protect yourself. We also link to separate articles on boiler room fraud, pyramid schemes and Ponzi fraud for more detailed information.
What is investment fraud?
Investment fraud means you are misled into investing money in products, projects, or companies that do not exist, are worthless, or never deliver the promised returns. Scammers often pretend to be trustworthy parties and use sophisticated sales techniques to convince you.
At Bitvavo, we’ve noticed that scammers sometimes impersonate well-known organizations or offer fake investment opportunities. Bitvavo itself:
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Does not offer investment advice.
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Will never contact you proactively via WhatsApp, phone, or email with investment offers.
What types of investment fraud are there?
There are different types of investment fraud. The most common ones are:
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Boiler room fraud: Scammers contact you by phone or email with an ‘exclusive investment opportunity’ in shares, crypto, or other products.
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Pyramid schemes: You earn money by recruiting new participants rather than selling real products.
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Ponzi fraud: In this case, existing investors are paid with the money of new investors, instead of with profits from real investments. Eventually, the system collapses when there are not enough new participants.
For a detailed explanation of these types, you can read the following articles:
How can I recognize investment fraud?
There are some clear signs to look out for:
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Unsolicited contact: you are suddenly called, emailed, or messaged.
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Excessive promises: extremely high returns are promised with no risk.
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Time pressure: you must decide quickly to take advantage.
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Lack of transparency: it is unclear who is behind the offer.
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Payments to unusual accounts: you’re asked to transfer money to foreign or private accounts.
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Suspicious online presence: few real reviews or warnings can be found about the company.
What should you do if you receive a suspicious offer?
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Do not respond to the offer.
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Do not transfer money.
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Block the sender.
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Report it to the Fraudehelpdesk and/or the AFM.
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Collect evidence, such as messages, emails, payment proofs, and screenshots.
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File a police report and bring all collected evidence.
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Contact our fraud department via fraud@bitvavo.com
Frequently asked questions about investment fraud
What should I do if I already sent money?
Contact your bank immediately to try to block the payment. Collect all available evidence and file a report as soon as possible with the police, and notify our fraud department via fraud@bitvavo.com. Also report the fraud to the Fraudehelpdesk.
How do I know if it’s really Bitvavo contacting me?
Bitvavo will never contact you via WhatsApp, phone, or email with investment offers. If you receive such a message, ignore it and contact our fraud department via fraud@bitvavo.com.
What are reliable sources to verify an organization?
You can check reliability through official authorities like the AFM and the Fraudehelpdesk. You can also search for independent reviews and warnings online.