Home / Business and Politics / Less than five percent of citizens recover money from investment fraud

Less than five percent of citizens recover money from investment fraud

Less than five percent of citizens who fall victim to investment fraud manage to recover their money, it was highlighted on Thursday during the conference of the Croatian Financial Services Supervisory Agency (Hanfa) ‘Don’t Fall for It! How to Recognize Investment Fraud?’

Hanfa’s Management Board member Anamarija Staničić stated that anyone can fall for fraud.

– We are all a target population for this type of fraudster – emphasized Staničić, adding that investment fraud is on the rise and it is not expected that this trend will decrease or reverse. She recommended that citizens arm themselves with information and knowledge to protect themselves.

She noted that most people fall for the promise of quick and large profits. She urges caution and thoughtfulness before making any payments prompted by such promises.

– Take your time and check the information about the person offering such an investment, the investment itself, and verify all available information – emphasized Staničić.

One should ask why that person is offering you such a unique investment opportunity.

– In 99 percent of cases, the answer is because they want to defraud you – said the member of Hanfa’s Management Board.

Before investing, it is necessary to check in Hanfa’s registry whether the company has a license to provide investment services in Croatia.

Hanfa also points out the main signs of investment fraud – excessive promises, guaranteed returns, pressure for quick decisions, unknown or suspicious internet domains, aggressive calls or messages, unregulated companies, fake advertisements, ads on social media, and communication through social media.

Minimal chance of recovering money

After realizing they have been defrauded, citizens should contact the police, Hanfa, or all relevant institutions, including the bank where they have an account, although the possibility of recovering money is minimal, and the percentage of recovered stolen money is less than five percent, said Staničić.

– If you have been defrauded, it is a normal reaction to feel discomfort and shame, but if you share that information with the relevant institutions, including friends and acquaintances, you may prevent other people from falling victim as well – she said.

She added that the increase in the number of frauds is a trend in the region and worldwide. The trend of rising such offenses has been noticeable since the COVID period, and this type of theft requires minimal effort and resources from criminals.

According to her, fraudulent advertisements can be easily created using artificial intelligence (AI), but AI-generated websites may have minor inconsistencies that indicate they are not legitimate websites.

The Ministry of the Interior recently published data on its website where suspicious site information can be entered and analyzed to determine whether the site is legal or not.

Miro Križan from the Agency for Electronic Media emphasized that this agency specifically monitors advertising space, especially advertisements related to financial services.

– We particularly monitor that this type of advertisement is not controversial, meaning it meets the general assumptions of the Electronic Media Act – Križan emphasized.

He noted that recently there has been an increasing number of native advertising in the digital environment. In this case, editorial content does not differ from advertising, leaving the reader unsure of what they are reading. This sometimes also applies to financial services.

Tagged: