Are You A Victim Of An Investment Scam: Know Your Legal Remedies

By Mashum Mollah

June 26, 2021

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It can be hard to know whether you have been scammed or being scanned. Scammers are known con artists who are at their best when they are winning over the confidence of others. In fact, to make this process smoother, many even form closure relationships with the victim.

Most scammers maintain an upfront of wealthy investors who have earned their money by investing in assets or simply known as an investment scam. And then convince you to give them your money to make you wealthy as well. Then, after a certain time, they stop communicating with you, and finally, you can’t contact them.

When you find that you have fallen victim to a scam, the first thing you must do is to hire an investment fraud attorney to guarantee you can take proper action against the scammer.

What Are The Obvious Signs Of An Investment Scam?

What Are The Obvious Signs Of An Investment Scam?

The best way to avoid finding yourself in such a scenario is to look for the red flags that point to scams. So here are the things you must notice.

1. Lacks Written Information

You must understand the fact that a trustworthy investment is followed by legal documentation. The document must encapsulate all the terms and conditions, including all the details. If a person is not giving you any written document, it can possibly be a red flag.

2. Unusual Payments

Scammers really hate bank transfers because the transfer can be traceable. So if you find that a person is suggesting unusual payment options and trying to cover up the transaction footstep, it can be considered a red flag.

3. Claim That You have Earned Profit But Not Pay You The Money

Most scammers tell their victims that they have made a profit out of their investment and try to convince the victim to invest more. But at the same time, they do not pay up the profits you have made. This is a sign that you are socially engineered to pay more. 

4. They Keep Wanting More Money

They might tell you to get back the profits you have made, you need to pay for the transaction fee or come up with other scenarios where they keep asking you for more money. 

Know Your Legal Remedies

Falling for scammers is something that most people do not admit to. Unfortunately, scammers are well aware of this human behavior and use this to their advantage. But frankly speaking, there is no point in being embarrassed. Being scammed is similar to being pickpocketed on the street.

As you report the pickpocket cases to the police authority, you must make a note of letting the authority know about the scam.

1. Law Enforcement

A scam is a criminal act. Hence, there are laws that protect your legal right when you are scammed. Report the event to the authorities. This might help you get back your scammed money. Your information will help the police get hold of such activists and prepare elaborate warnings for the others.

2. Your Financial Institution

If you have provided your bank account details to the scammer, the first step you must take after becoming an investment scam victim is to inform your bank authorities about the event. Then, depending on the situation, the bank can move forward with the best course of action.

3. Credit Bureaus

3. Credit Bureaus

If the scammer was able to get your identification number, you must contact the three credit bureaus and put a free 90 days investment scam alert on your credit reports. This will mitigate the risk related to the scamming. In addition to that, you can also freeze your credit card to prevent anyone from accessing your credit report.


Overall the most important step is to let your close ones know about the scam and notify law enforcement. The longer you take to inform the relevant authorities, the harder it will be for you to minimize the fallout.

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