2024-01-19 10:11:00
Last year, 15.5 million euros were misappropriated through investment fraud, according to the FSMA. In fact, this amount might be much higher because “young people are less inclined to declare that they have been victims of fraud. On the one hand because they are often victims of smaller amounts. On the other hand, because there is a feeling of shame at having been cheated,” explains Alexandre Pluvinage, Head of anti-fraud and online security at ING. And if the FSMA statistics show that it is mainly older people who are trapped, the survey carried out by ING reveals on the contrary that many young people fall into the trap. Thus, a fifth of respondents say they have lost money in investment fraud, a proportion which rises to 40% among the youngest. A figure which does not surprise Alexandre Pluvinage, insofar as “two main communication channels are used by fraudsters. Email and social networks. The latter being very popular with young people, we understand that they are a privileged target. Not to mention that young people are also more attracted to cryptocurrencies and other assets found on unregulated markets.”
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If it is customary to say that what is too good to be true is necessarily false, when it comes to investments, many Belgians still tend to ignore the adage. So, when asked what they would do if someone offered them an investment with a guaranteed return of 10% per year, 54% of them said they would listen and that they might even do so. ‘accept. This is quite surprising, especially when we know that the Belgian investors surveyed think that an investment in the stock market, whose return is not guaranteed, only produces an annual return of 6% in the long term. About a third of investors would listen to a guaranteed 10% investment proposition, but not follow through.
”This is largely due to the techniques of fraudsters, who do not hesitate to harass their victims. They are sometimes aggressive by reproaching their victims for not giving in to an offer that they cannot refuse, telling them that not everyone can benefit from it. Their other technique is to present false reports, to make them believe in incredible returns. So, to someone who has “invested” €2,500, they will present a false account with €10,000, supposedly proof of their winnings. Their weapon is to convince the victim that with them, they have access to complicated investments, but that they will simplify their lives. And sometimes they even manage to convince them to borrow money from their loved ones or take out a loan. This even has real tragedies.”
On social networks, they will use all the marketing tricks. “On Facebook for example, they will identify people who are interested in cryptos or investments. They will then bombard them with videos demonstrating sometimes how difficult it is to invest and sometimes how, thanks to them and their services, the person will have nothing to do but entrust their money to win big. It is important to keep in mind that investing always involves risk. So, if you are approached by guaranteeing a high return, without risk, this is already a sign of fraud.”
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On the banks’ side, we are increasing efforts to try to protect customers who are victims of this fraud. The money can thus be blocked preventively if the bank detects a movement towards a fraudulent account, reported to the FSMA. “But sometimes fraudsters go even further, warning victims that it is possible that the bank will call them to report suspicious movements. Their argument is that banks don’t like your money invested elsewhere. Their speech is then well rehearsed and they go so far as to give you a so-called secret code that only you and them share. As if to make sure everything is secure…”
Even more perverse, fraudsters never let go of their victims, even when they are spotted. “They are back at it, posing as a company specializing in the recovery of fraudulent amounts. You should know that this type of private company does not exist. They promise you a recovery of the sums, in exchange for a percentage for the procedural costs… And they do not hesitate to ask you to pay these costs in advance.”
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To avoid falling into the nets of cybercriminals, Alexandre Pluvinage publishes a series of podcasts giving you the keys to spotting scams, protecting yourself and others. “The fraudster, the hacker and you” can be found on different platforms.
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