FI proposes enhanced preventive work in efforts to prevent investment fraud

FI regularly publishes information for consumers about how they can protect themselves from investment fraud. The report proposes several targeted educational initiatives.

"FI plays a key preventive role when it comes to investment fraud. We need to continue to improve our work with spreading knowledge about investment fraud and warning about dishonest actors," says Mikael Sandahl, a supervisor at FI and an expert on investment fraud.

The report also proposes how FI's warning list could be improved. The warning list contains names of dishonest businesses and websites and is available to both consumers and firms. FI proposes an evaluation of the warning list to determine if it is possible to extend reach of the list and make it more usable and up to date.

Banks and payment service providers need to strengthen their work

FI emphasises in the report the importance of banks and payment service providers also continuing their preventive work, for example by informing customers about how investment fraud is perpetrated. These firms also need to continue to strengthen consumer protection, for example by performing controls when the customer conducts transactions that deviate from normal patterns.

The report is limited in that it proposes measures that FI and firms under FI's supervision can take.

"At the same time, we want to highlight that investment fraud contains many different steps. There are other types of firms that provide services that enable investment fraud, for example when fraudsters advertise in digital channels or create websites," says Mikael Sandahl.

Fraudsters are persistent in their contact

During Q3 2024, FI issued warnings for 2,146 new businesses and websites. FI also receives questions daily from people exposed to investment fraud or attempts at investment fraud.

"Many are aware that there are fraudsters out there – and yet it still can be difficult to recognize a fraud attempt. Fraudsters can present themselves as very trustworthy. For example, there are websites where those who choose to invest can follow how their investment is growing. But, naturally, it is all fake," says Mikael Sandahl.

FI continues to see a trend that fraudsters are persistent in their contact. First, the fraudsters successfully trick you into transferring money for a made-up investment. They then contact you again to "help" get your money back. Often, they first want you to pay a fee, which they might say is a tax, a bank fee, a legal fee, or a commission.

Sometimes they say they are collaborating with a government authority. However, it is important to remember that no government authority will ever contact a consumer and offer to help them recoup money lost from an investment fraud. It is best to just hang up the phone and not answer emails that offer such so-called help.

Mikael Sandahl also says that your contact details can easily end up in the hands of other fraudsters.

"If you have ever fallen victim to a fraud, you need to be particularly vigilant about anyone who contacts you with new offers or pretends to want to help you recoup previous losses," he says.

Tips for how to avoid being tricked

Investment fraud occurs frequently and affects many consumers. We therefore prepare on a regular basis information about fraud and what a fraud attempt looks like. Below are some tips about how to avoid becoming a victim of an investment fraud.