02 February, 2021
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Scam Stories – Investment Scam

September 20, 2018

The cold-callers sounded very professional and seemed to have excellent knowledge of investment matters. How did Steve end up losing £200,000 to an investment scam?

The Story:

They answered all of Steve’s questions and their initial contact was followed up with calls from  ‘advisers’. As Steve’s superannuation funds weren’t doing so well, he decided to explore this new investment opportunity. He did not think about discussing the investment opportunities with anyone else.

Over the next 12 months, Steve made a number of transfers to the ‘investment professionals’, initially starting with $10 000. He was referred to a very professional looking website and set up a login account, which showed his money increasing in value as the market ‘went up’. Confident the system was working, he invested more money, to a total of $200 000.

He only realised that the investment scheme was a scam when the website went down and he could no longer access his account or contact the offshore group by phone.

Steve then did some research and discovered the company was fake and not registered with the Securities Investment Commission but he was too embarrassed to tell anyone or report it to police. He was contacted by police after they discovered his name on bank transfers made to known fraudsters.

Since learning of the scam, Steve was again contacted by criminals, with offers to help him get his money back from the original investment. This time Steve contacted police, who explained this was a ‘follow up scam’ and warned him to expect more calls like this as his name was most likely passed on to other criminals.

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*The story above is based on one or more real scam reports received by the ACCC. The names and images of victims have not been used for privacy purposes . Story sourced and edited from –

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