Frequently asked questions about investment fraud
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Frequently asked questions about investment fraud
Investment fraud can affect anyone – whether through fake online platforms, dubious advisors, or fraudulent crypto investments. In this FAQ, you'll find answers to the most important questions about investment fraud, legal options, and chances of getting your money back.
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FAQ on crypto fraud
Investment fraud occurs when investors are persuaded to invest money through false or misleading information in order to gain a financial advantage for the perpetrator.
Typical forms include fraudulent online investments, false investment offers, pyramid schemes, dubious broker platforms, and fraudulent cryptocurrency offers.
Warning signs include unrealistically high returns, pressure to invest quickly, a lack of transparency, being based abroad, or a lack of approval from BaFin.
Secure all documents (emails, bank statements, contracts) and contact a lawyer specializing in investment fraud immediately.
Yes. Investment fraud is punishable under Section 264a of the German Criminal Code (StGB) and can be punished with up to ten years' imprisonment.
Section 264a of the German Criminal Code (StGB) criminalizes the deception of persons about essential circumstances of capital investments, such as returns, risks or the use of funds.
Depending on the severity of the case, fines or imprisonment of up to ten years may be imposed.
In many cases, a refund is possible, especially if funds are traced or third parties (banks, payment service providers) are jointly responsible.
A specialized lawyer examines claims for repayment, criminal charges, and possible claims for damages against perpetrators or third parties involved.
Yes. Filing a criminal complaint with the police or public prosecutor's office is important to initiate investigations and protect other investors.
The public prosecutor's office examines the suspicion, initiates investigations and, if possible, secures the perpetrator's assets.
Collect bank statements, contract documents, emails, chat histories, and payment receipts. These are crucial for providing evidence.
Depending on their complexity, investigations and court proceedings can take several months or even years.
Yes. The statute of limitations for criminal claims is generally five years, while civil claims often last three years from the date the damage was discovered.
A system in which old investors are paid from the deposits of new investors without any real profits being made.
Yes, as a rule, there is investment fraud or at least fraud (Section 263 of the German Criminal Code).
Platforms that appear to offer trading in stocks, forex, or crypto, but do not actually conduct real trades.
Missing imprint, foreign phone numbers, no proof of a license, and no payouts are clear warning signs.
In individual cases, yes – for example, if suspicious transactions were not checked or money laundering regulations were violated.
BaFin warns against unlicensed providers and can prohibit or suspend business – but it does not provide compensation.
You can check whether the provider is authorized via BaFin’s company database at www.bafin.de.
Online trading, cryptocurrencies, social media advertising, fake investment advisors, and fake celebrity endorsements.
Investors invest in supposed cryptocurrencies or exchanges whose operators never actually invest the money.
Perpetrators manipulate investors emotionally, e.g., by building trust over a long period of time or by engaging in love scams with an investment focus („love scam“).
Many fraudsters operate from abroad through shell companies, which makes investigations and money repatriation more difficult.
Yes, specialized law firms work with international partners to track down perpetrators and payment methods across borders.
A follow-up scam in which victims are contacted again to supposedly get their money back – in reality, another scam.
Be wary of high returns, avoid payments to unknown accounts, and conduct independent advice and reviews of providers.
Yes, reputable funds and bonds are subject to government supervision, which reduces the risk of fraudulent activities.
Investment fraud (Section 264a of the German Criminal Code) concerns deception regarding capital investments; fraud (Section 263 of the German Criminal Code) is defined more generally.
Not mandatory, but highly advisable, as specialized lawyers know legal ways to recover and limit damages.
Raising capital through digital tokens – often the target of fraudsters who deceive investors with fake coins.
Private perpetrators can also be reported and sued for repayment. Emotional ties do not alter criminal liability.
Yes. Many perpetrators use Facebook, Instagram, or Telegram to lure investors with fake profiles.
Yes. For example, in the case of fictitious construction projects, false prospectuses, or overvalued investments.
It can be difficult to get money back, but there is sometimes a chance through bankruptcy proceedings or co-perpetrators.
Through criminal charges, civil lawsuits or adhesion proceedings in criminal proceedings.
A procedure in which victims can assert civil claims directly in criminal proceedings.
As a rule, three years from the date of knowledge of the damage, in exceptional cases up to ten years.
Under certain circumstances, yes—as extraordinary losses in the context of the income tax return. Tax advisors can verify this.
Another word for pyramid scheme – named after the fraudster Charles Ponzi.
Yes, for example Prokon, Infinus, Wirecard or fraudulent crypto projects like „OneCoin“.
Transparent information, imprint, BaFin license, comprehensible contracts – no pressure, no promise of „guaranteed profit.“.
Data is resold in fraudulent networks – victims are then defrauded again (e.g. by alleged recovery companies).
Contact your bank, change your passwords, file a report, and have them investigate possible identity theft.
Yes. Almost all countries have similar cases. European investigative authorities are increasingly cooperating.
Yes. Even if perpetrators are based abroad, payment service providers, banks, or accomplices can be held liable—often successfully.
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