Fake investment and crypto advisers: the call that promises big returns

Fake investment and crypto advisers: the call that promises big returns

It may begin with a call from a polite "investment consultant", an advert featuring a famous face, or a stranger in a WhatsApp or Telegram "investment group" sharing screenshots of huge profits. The pitch: cryptocurrency, forex, gold or IPO shares with returns of 20% or more a month, "guaranteed" and "low risk". You start small, the platform shows your money growing, and you are encouraged to invest more. When you try to withdraw, the money is gone. This is an investment scam. The quick check: is the firm regulated by the Monetary Authority of Singapore (MAS)? And does it appear on MAS's Investor Alert List?

How does the scam work?

1. The contact. A cold call, a social media advert (often using deepfaked videos of public figures), a dating-app match who "happens" to trade, or a chat group run by a "mentor".
2. The relationship. An "account manager" calls you regularly, friendly and patient, and shares "insider" tips.
3. The platform. You are asked to download an app or open an account on a website that looks professional, with live charts. Sometimes they ask you to install remote access software "to help you set up".
4. The small win. You invest a little and are allowed to withdraw a small profit. Trust grows.
5. The big deposit. You are pushed to invest more, borrow, or use your CPF savings or a loan. Payments go to individuals' bank accounts, crypto wallets or companies with no link to the platform's name.
6. The wall. Withdrawals are blocked: "taxes", "anti-money-laundering fees", "account verification". Each needs another payment. Then the platform disappears.

What is the recovery scam?

After losing money, many victims are contacted again, by a "lawyer", a "fund recovery agency" or even someone posing as a regulator or the police, who promises to recover the money for an upfront fee. It is the same criminals, or others who bought the victim list. Nobody legitimate charges you in advance to get scam losses back.

What are the red flags?

• Guaranteed high returns with low risk. Real investments do not guarantee anything.
• Pressure to act now: "the window closes today".
• Payments to personal accounts or crypto wallets rather than to a regulated firm.
• The firm is not in the MAS Financial Institutions Directory, or its name only resembles a licensed one.
• The name appears on the MAS Investor Alert List, which lists unregulated persons that may have been wrongly perceived as regulated by MAS. Not appearing on it does not mean the firm is safe.
• They want remote access to your phone or computer.
• Withdrawals require more fees.

What do I do if they're calling me right now?

1. Do not commit to anything. Say you will check and call back, then hang up.
2. Check the firm's exact name in the MAS Financial Institutions Directory and the Investor Alert List. Clone firms copy real names, so also check that the website, phone number and email match the ones in the directory.
3. Never install remote access software or share your screen with an adviser.
4. Report the number through ScamShield and in the spam numbers directory.

What if I've already invested or paid?

1. Stop all payments, including "fees" to unlock withdrawals.
2. Call your bank on the official number. Report the transfers as fraud and ask what can be stopped or recovered. If you paid by card, ask about a dispute.
3. If you sent cryptocurrency, keep the transaction hashes and wallet addresses, and report them to the exchange you used.
4. Remove any remote access software and change your passwords from a clean device.
5. Keep evidence: chats, the website address, app name, contracts, statements and receipts.
6. Make a police report via SPF e-services and follow ScamShield's I've been scammed checklist.

How do I avoid the second scam?

• Do not respond to anyone who contacts you offering to recover your losses.
• Do not pay any upfront fee for "recovery", "legal costs" or "unfreezing".
• Updates about your case come from the police officer handling your report and from your bank, through channels you can verify.

Frequently asked questions

The platform shows my profits growing. Isn't that proof it is real? No. The numbers on a fake platform are whatever the scammer wants you to see.

A famous person recommended it in a video. Doesn't that make it safe? Deepfake videos and fake news articles featuring public figures are a common hook. Celebrities do not endorse personal crypto opportunities in ads.

Is all crypto a scam? No, but crypto trading is high risk, and cryptocurrency payments are very hard to recover. MAS has repeatedly warned the public about the risks of trading digital payment tokens.

The adviser is very patient and kind. Can they still be a scammer? Yes. Patience and friendliness are part of the method.

In short

Guaranteed profits, pressure, unregulated platforms and fees to withdraw: that is the investment scam. Check every firm with MAS before investing a single dollar, never give remote access, and ignore anyone offering to "recover" losses for a fee. If you have already paid, call your bank and make a police report. And report the number in the NoCall spam numbers directory.