A deceptive scheme enticing a victim to invest in a fake opportunity for a promised high return.
Frequently, Investment Scams also overlap with Romance Scams.
In a fraudulent investment scheme, an offender persuades their target to transfer their funds to a non-existent fund or to contribute to a counterfeit investment. Typically, the perpetrator offers an attractive profit to lure the victim into initiating the transaction.
These scams involve placing investments in assets such as cryptocurrencies, gold, real estate, and other valuable commodities. Perpetrators of investment fraud often utilize cold-calling strategies to pinpoint their targets and exert pressure for immediate responses, citing the limited-time nature of the opportunity.
Around the world, investment scams typically contribute to huge monetary losses while presenting a low number of individual cases compared to other Authorized Push Payment (APP) scam types.
A differentiated approach to tackling Investment Scams
Regarding Investment Scams, the deceptive transfer of funds can occur either during a live phone call between the victim and fraudster or when the victim is alone. For instance, they might receive an email with instructions on how to execute the investment opportunity.
In instances where the fraudster manipulates the victim into making a deceitful transfer while on the phone, behavioral biometrics intelligence can be leveraged. This involves scrutinizing the ongoing call to detect signs of hesitation, mouse doodling, phone motion, and the dictation of an account number. These behaviors are strong indications the fraudster is in the process of persuading the victim to make the transfer.
In cases where the victim completes the transfer independently, there are other revealing cues to consider — for instance, monitoring for the presence of high-risk applications such as cryptocurrency and dating apps, evaluating the transfer context, examining connections to new beneficiaries, noting repeated deposits, and scrutinizing transactions to high-risk account destinations.
Effectively countering investment scams necessitates a comprehensive analysis of behavioral, device, network, and application intelligence simultaneously. This gives financial institutions more insight and opportunity to shut down deceitful transfers before the purchase money is gone.
Reported losses from Investment Scams in 2022
Remote access attacks