Report fraud & stop fraudulent brokers

Of course, we are personally available to support you should you wish legal advice in your fraud case. We offer a free initial consultation nationwide and throughout the German-speaking countries.

Report fraud & stop criminal trading providers

In the world of online trading, there is an enormous, daily growing number of dubious providers. These trading platforms usually promise unrealistic returns. The investors’ money is often not used for online trading, but transferred directly to foreign accounts by the criminal operators.

In our warning list for investors as well as in our blog, we also report daily on providers of online trading or crypto trading for which there are either official warnings or for which we have received information from clients that refer to:

• lack of seriousness,
• suspicion of fraud or
• difficulties with the payment of winnings

relate to.

Herfurtner Attorneys at Law would like to thank all those who provide us with information on dubious brokers and hope that we can protect a large number of investors from fraudulent offers with our articles on these providers.

Report fraud: Online trading scams and cybertrading

The Lion’s Den, Elon Musk and other well-known personalities who stand for wealth and financial success are very often misused by fraudulent trading platforms for advertising purposes.

Fake quotes are supposed to signal to potential customers that this is serious advertising and that the celebrities would knowingly advertise the respective investment platform.

False reviews on rating portals are also intended to provide the appearance of seriousness. The same goes for supposedly exclusive insider tips on allegedly guaranteed lucrative investments and capital investments.

Finally, the scammers lure with the promise of very high returns. These are backed up with mostly professionally faked diagrams showing the alleged profits.

In cybertrading and online trading scams, however, no client funds are usually used for trading. Instead, the criminals transfer every cent directly abroad.

If a partial payout does occur with these fraudulent brokers, the suspicion of a pyramid or snowball system is obvious. In this case, the people behind the scheme deliberately divert the income into their own pockets. Some investors are led to believe that they will receive returns.

In reality, they are paid the money of other defrauded clients. The majority of investors’ money within such a system is misappropriated.

Contact via social media – email or telephone

Clients who instruct us for online trading fraud report time and again that they initially contact us via WhatsApp, Facebook or Telegram. In many trading groups of well-known messenger services, there is a certain group dynamic that is exploited by the perpetrators.

The desire of investors for passive income and quick wealth brings them together and makes it easy for the fraudsters to deceive them.Pump & dump groups, for example, are a big problem.

But also dubious, unlicensed and fraudulent online trading platforms advertise their financial services in the Telegram and WhatsApp groups. They also place advertisements on Facebook. Allegedly lucrative insider tips are also circulating in such groups. As a rule, the high risks of loss are not explained.

The brokers who contact investors are mostly trained in sales as well as psychology. The customer service is initially very close and personal. The goal here is to build trust with the new customer and to entice him to make his first investments.

First small investments

In many cases, online trading scams start with investments of 250 or 500 euros. These are common amounts with which the pretend online brokers and trading platforms damage investors worldwide.

Subsequently, investors are usually persuaded to make further deposits.

Either with:

• the promise of higher returns
• the presentation of falsified diagrams showing the alleged profits skyrocketing
• or by demanding fictitious taxes, commissions or proof of liquidity.

The victim notices the fraud when he demands payment of his funds. At this point, he is either put under extreme psychological pressure to make further investments, or the broker disappears completely from the scene and can no longer be reached.

Often, investors also discover that the trading platform on which they have invested is suddenly offline. This means that they no longer have access to their customer accounts.

How can I protect myself from online trading scams?

You can find tangible information about brokers and trading providers who operate dubiously, are suspected of fraud or act without official authorisation on our warning list for investors and in our blog, where we publish new articles every day.

Investors can also find essential information on the websites of Europe’s official financial supervisory authorities. The Zurich Cybercrimepolice department also reports on online trading providers and Cyrpo Trading reports on companies for which a fraud report has been filed.

If you are thinking of investing on a platform on the internet, pay attention to the following features:

1. Is there a complete imprint as well as information on business managers?
2. Is the company’s registered office indicated?
3. Is there a warning notice from a financial authority about the provider?
4. Is the operator of the trading platform not registered or licensed by a European financial supervisory authority?

In these cases you should refrain from investing.

Topics in our legal advice

If you have invested in or made payments to one of the companies on this list, our lawyers will be at your disposal at short notice.