Report Financial Fraud in Investment Platform in Spain
In recent times, online investment platforms have gained a significant presence on the internet among those looking for an easy and quick way to grow their money. However, there have also been numerous cases of scams affecting both individual and professional investors.
Given the increase in complaints about financial fraud, it is essential for investors to know how to act and have the necessary information at their disposal to deal with a financial scam.
In this article, we will explain how scams on investment platforms work and the different types of financial fraud that occur in Spain. We will also provide legal advice on how to report financial fraud and recover stolen money.
What is a Scam on an Investment Platform?
Investment platform scams occur when certain companies or individuals take advantage of investors’ trust to steal their money. These platforms often promise high and quick returns, but once the investors deposit their money, the platforms disappear or refuse to allow the investors to retrieve their invested money.
Some of the most common scams on investment platforms include:
- Ponzi or pyramid schemes: These schemes promise high returns if you recruit more people to invest. The new invested money is used to pay older investors until these funds collapse, often leading to bankruptcy or disappearance without providing any explanation to the clients.
- Unlicensed platforms: Companies operating without any regulation and not authorized by the National Securities Market Commission (CNMV) in Spain.
- Fake investment accounts: Platforms that display supposed gains in clients' investment accounts but are not conducting any real investment. They use fake financial software or fraudulent computer systems to create a real appearance of investment, but in reality, the money is transferred to the scammers' accounts as soon as you deposit it.
- Market manipulation: Financial platforms that manipulate the prices or values of assets in a particular market to deceive investors and take their money.
If you have fallen victim to a scam on an investment platform, it is crucial to act quickly and seek appropriate criminal law advice.
How to Detect Financial Frauds?
To avoid falling victim to financial fraud, it is important to recognize them and take precautions before making any kind of investment. Some of the most common characteristics of financial fraud include:
- Promises that your investment is guaranteed, and you will make a lot of money: Any investment involves inherent risk depending on the type of asset. If an investment platform guarantees high profits without risk, it is likely a scam, or these returns are highly inflated without any previous track record.
- Phone calls or communications to pressure you to invest immediately: These investment platforms sometimes call you or communicate with you to pressure you into making a quick investment. Other times, they reach out after you have visited their website or registered with your email and phone number, aiming to make you act quickly to avoid "missing out on an opportunity to get rich." Investments, like fine wine, require time, so be wary of promises of quick, high returns.
- Lack of transparency about the company and contact information: If you cannot find transparent information about the company, whether it is regulated, who is responsible, or how to contact them, it is probably untrustworthy.
- Issues withdrawing money: When you try to make a transfer or withdraw your invested money, they prevent you from doing so or provide excuses for delaying fund withdrawals.
- Financial operations without legal regulation: Always verify that the investment platform is registered and regulated by the CNMV or an equivalent Spanish or international regulatory body. If it is not, avoid investing and look for other options, as there are plenty of safe ways to invest today.
What to Do If You Are a Victim of a Financial Scam in Spain?
If you suspect you have been a victim of a scam, it is important to act quickly to minimize investment losses. Here are the steps to follow:
1- Gather all information and evidence of the scam
Collect all documents and information related to the investment. This includes emails, account statements, screenshots of the platform, transfer receipts, contracts, and any communication you had with the investment company. The more information you have, the easier it will be for authorities to investigate and for a lawyer to defend your case.
2- Contact the fraudulent investment company
If you suspect you’ve been a victim of financial fraud, the first thing to do is contact the investment company to try to resolve the situation. In many cases, fraudulent platforms will give excuses or simply not respond, so it’s important to keep all communications.
3- Consult with a lawyer specialized in financial fraud
Reporting a scam on an investment platform can be challenging, so it’s advisable to seek specialized advice from a financial fraud lawyer. They will provide quality advice to maximize your chances of recovering the stolen money.
4- File a complaint with the police
If you confirm you’ve been scammed, you can report the fraud to the police. It is important to provide as much information as possible, including the documentation you have.
5- Inform the National Securities Market Commission (CNMV)
The CNMV is the body responsible for supervising financial markets in Spain. If the platform is not registered or is behaving suspiciously, you should inform the CNMV.
6- Request a refund of the invested funds
Depending on the payment method you used to deposit money into the platform, you can attempt to recover your invested funds.
What Legal Actions Can You Take to Recover Your Money?
In many cases, legal action is the most effective way to attempt to recover lost money from an investment scam. The legal actions you can take include filing a lawsuit in Civil Courts or a criminal complaint in Criminal Courts. Depending on the type of financial fraud, it may be advisable to pursue civil or criminal action.
Regarding civil actions, whenever possible, a civil lawsuit should be filed against the company or individuals responsible for the scam, aiming to recover the invested funds and claim damages.
Regarding criminal actions, if the scam is particularly serious, affects multiple people, or involves a provable crime, it is important to file a criminal complaint for fraud, embezzlement, or money laundering. These crimes carry prison sentences, and there is an obligation to compensate the fraud victim with the money invested in the fraudulent platform, along with damages incurred.
Seek Specialized Advice on Financial Fraud in Spain
Investment platform scams are an increasingly common reality in Spain. If you have been a victim of financial fraud, it is crucial to act quickly and seek specialized legal advice.
At Forcam Lawyers, we are committed to helping you report fraudulent investment scams and recover your money. Don’t let scammers get away with your money. If you need more information or legal advice, do not hesitate to contact Forcam Lawyers.