In investment fraud, also known as boiler room fraud, victims are lured into investing. This often happens through advertisements from famous Dutch people on social media. The promised returns are always too good to be true. Victims can track their investments and returns online, and have regular contact with their investment advisor (the criminal). If the initial returns are good, they are asked to invest more money.
Worthless Investment
When the investor wants to withdraw their money, all investments turn out to be worthless and the money is gone. The personal online page is gone, and contact with the scammer is no longer possible. Some victims have invested more than 500,000 euros and lost everything. The average loss is around 15,000 euros, says Tom Meurs of the East Netherlands cybercrime team.
Be Alert and Take Your Time
The police advise:
• Take your time. Dont let yourself be pressured and make no hasty decisions.
• Consult with others before investing.
• Rely on known companies or local entrepreneurs you can visit.
• Do thorough research on the provider; is it registered in the Netherlands? Check the register of the Authority for the Financial Markets (AFM).
• Be cautious if returns seem high and risks low.
• If you have become a victim, contact the fraud helpdesk and inform your bank. Also, file a report with the police.
What to Do if You Are a Victim
If you have fallen victim to this type of fraud, follow these steps:
• Stop transferring money (crypto).
• Contact the Fraud Helpdesk.
• Report it to your bank,
• File a report with the police,
• Do not engage with so-called recovery companies.
Recovery Companies
A recovery company may contact victims claiming they can recover their money, often requiring a deposit first. These companies are likely part of the same fraudulent investment schemes.
Impact on Victims
The impact of this crime is significant. Many victims report feeling deeply affected and losing trust in others. Tom Meurs adds: Some victims have to sell their homes because they can no longer afford rent. Others feel so desperate that they see no way out. It is important to provide support to victims of this type of crime.