Most investment fraudsters use similar tactics, such as leaving the impression that they have deep industry experience, falsely presenting themselves as licensed brokers, producing apparently credible websites (imposter websites) as well as falsified or inflated documentation to substantiate their claims. Recently departed Bernard Madoff misled many seasoned investors for years using his position and affinity to powerful members of society 3 as well as plain lies and fake data. These fraudsters are cunning and their schemes are elaborate enough to mislead consumers or even investigators. Sadly, not all new and returning investors are as sophisticated as the fraudsters preying on them. 1 According to a statistic from Bank of America, more money has gone into stock-based funds over the past five months than in the previous 12 years combined. Now more than ever, financial markets are seeing the influx of new investors who have held onto their cash due to canceled vacations and curbed spending following COVID-19 restrictions. This increase in access has given fraudsters an opportunity to seize on the vulnerability and excitement of these consumers who in many instances have access to investment products and services for the first time. Robinhood, Moneybox and now even traditional banking institutions are increasing the ability for consumers to invest, save and grow their money. Investments have quickly become synonymous with the fintech industry.
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