The Timeline of an Investment Scam
Investment scams often don’t happen overnight—they unfold in a series of steps, each one designed to lure you in,
build trust, and then strip you of your savings.
The story of these scams is one of gradual deception, where the stakes increase, and the consequences hit harder.
Below is a timeline that explains the key moments you should be aware of in an investment scam.
Meet Boris, an unsuspecting investor who fall victim to a well-designed scam.
Boris checks his inbox and sees an enticing message: “Exclusive Investment Opportunity: Secure Your Financial Future Today!” The email is professional, the subject line urgent. A bold headline promises astronomical returns—much higher than any bank could offer. Boris moved to Australia in the hopes of securing a future for his family he could have never imagined in his home country, so the message is certainly enticing. The website linked in the email looks polished and official, making it seem like a legitimate financial institution.
Red Flag: Promises of guaranteed returns, often too good to be true.
Boris visits the website and is impressed by its sleek design and professional look. The testimonials from “satisfied investors” are sprinkled with success stories. People claim to have doubled their money within months. The website looks legitimate. Boris, eager for financial growth, dismisses any hesitation. After all, these people are just like him, and the returns are too good to miss.
Red Flag: Flashy websites and fabricated, generic testimonials. Testimonials can easily be fake.
Feeling the pull of potential profit, Boris decides to invest a modest amount, hoping to test the waters before committing more of his hard-earned money. The process is easy: a few clicks, a wire transfer, and suddenly he’s on an exciting new adventure. There’s no paperwork or verification process—just a simple, quick transaction.
Red Flag: No official paperwork or legal disclosure.
Boris eagerly logs in to the site, hoping to see a spike in his account. The numbers are encouraging. His small investment has increased by 10%. It’s not as much as the bold promise, but it’s enough to excite him. Boris tells his friends and family about it, proud of his decision. They’re impressed, and a few even consider investing too.
Red Flag: No way of verifying actual returns.
A month has passed, and Boris receives a follow-up email from the “investment group.” This time, it’s more persuasive: “To fully capitalise on the potential, you need to increase your stake.” They say the market is ripe for exponential growth, but only if he invests more. Feeling both cautious and excited, Boris discusses it with his wife Elena and together they decide to double his investment, lured by the prospect of bigger returns.
Red Flag: Increasing pressure to invest more money without clear information about the risks.
A few months into his investment, Boris tries to contact the company’s customer service. He wants to ask about withdrawing some of his profits, but the response time is exceptionally slow. Days pass with no reply. Frustrated, Boris checks the website again—but it’s loading slower than before. Something feels off.
Red Flag: Unresponsive customer support and technical issues on the website.
Boris logs in one morning, expecting to see a surge in his account value. Instead, he’s greeted with a message: “Site under maintenance—please try again later.” Days turn into weeks, and every time Boris tries to access his account, he’s met with the same message. Concerned, he tries calling the provided number—only to find it disconnected.
Red Flag: The website and customer service go dark.
Boris’ worst fears are confirmed: his money is gone. No one answers his calls or emails. His once-promising investment has evaporated, and there’s no way to retrieve it. The scam was successful, and Boris—like many others—has fallen victim to a con that he didn’t see coming.
Red Flag: No way to withdraw funds, the company vanishes with no way to contact them.
How to Spot the Red Flags Early
As Boris’ timeline shows, there are warning signs throughout the scam process. If you know what to look for, you can stop a potential scam before it’s too late. Here’s a breakdown of the red flags:
- Unbelievable Returns: Scammers often promise returns that far exceed what is considered normal in the market. If something sounds too good to be true, it probably is.
- Urgency: Pressure tactics are common. Scammers want you to act quickly so you don’t have time to think through your decision.
- Lack of Transparency: If the investment platform doesn’t clearly explain how your money will be used, or if they refuse to provide details when asked, it’s a serious warning sign.
- No Verification or Regulation: A legitimate investment will be regulated by a government body, and you should be able to verify its legitimacy easily. If you can’t, stay away.
- Disappearing Act: When a company suddenly stops responding or their website goes offline, it’s time to panic. Scammers often disappear once they’ve drained your account.
If you believe you’ve been scammed and don’t know what to do next, visit our Scam Safety Hub for detailed, step-by-step guidance.
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