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Recognising and avoiding investment fraud: How to protect your money
Criminals are increasingly luring people with seemingly attractive investment offers. However, promises of high returns often hide fraud. Investments such as stocks, securities or cryptocurrencies are particularly affected.
On this page, you will learn how to recognise investment fraud early, protect yourself effectively and act correctly in an emergency.
Key points:
Recognising investment fraud: Be vigilant for unrealistic returns, time pressure or a lack of transparency – these are typical warning signs.
Protecting yourself: Carefully check the providers and their authorisation with the German Federal Financial Supervisory Authority (BaFin)* and seek independent advice if you are unsure.
Acting in an emergency: Break off contact, inform your bank, secure evidence and file a report with the police and BaFin.
*For customers outside of Germany, please refer to your local regulator and/or local crime enforcement organisation.
What is investment fraud?
Investment fraud – also called capital investment fraud – means that criminal individuals or companies deceive investors to get their money. They often lure them with seemingly attractive investment offers, which in many cases involve investments such as stocks, securities or cryptocurrencies.
Typical types of fraud
Boiler-Room Scams:
Telephone investment advice with supposed "top stocks" or bonds. Professional-looking documents, but no regulated trading.
Romance Invest:
Building an online relationship, followed by joint "investing" on fake platforms. Initially, smaller payouts are made, but later the fraudsters demand large additional deposits.
Crypto Platforms:
Fake exchanges with falsified dashboards and supposedly guaranteed profits. Often associated with subsequent costs.
Ponzi Scheme:
Payouts come from new capital – they collapse as soon as fewer people invest.
Prospectus or Securities Fraud:
Incomplete or manipulated information in sales prospectuses, lack of risk warnings.
How do you recognise investment fraud?
Criminals are working with increasing professionalism: they build trust, specifically target emotions and bypass security mechanisms by using deceptively real-looking websites, video calls, supposedly secure communication channels or even AI-generated voices. They may pose as employees of a bank or investment firm, appear knowledgeable and use fake dashboards to feign early "profits" to motivate further deposits.
Warning signs you should look out for:
- Unrealistic returns or exclusive "VIP offers".
- Time pressure ("today only", "last chance").
- Lack of transparency regarding fees, responsible persons or company headquarters.
- Unsolicited contact via social media or messenger services.
- Requests for proof of liquidity or copies of ID cards via messenger services.
- Unclear or missing BaFin authorisation, warnings on the BaFin warning list.*
- Suspicious or risky payment methods such as transfers to (foreign) private or intermediary accounts, unverified crypto wallets or advance fees.
* For customers outside of Germany, please refer to your local regulator and/or local crime enforcement organisation.
How can you protect yourself from investment fraud?
Caution, time and thorough information remain the best protection. These measures also help:
What you should do:
- Check providers in registers and review warning lists.
- Read contracts and prospectuses completely, check figures for plausibility.
- Get a professional second opinion (e.g., from advisors at Deutsche Bank).
- Communicate in writing and keep records.
- Start small and test the exit conditions.
What you should avoid:
- Making decisions under time pressure.
- Sending copies of ID documents (screenshots) via messenger services.
- Granting remote access to your devices or online banking.
- Paying advance fees ("taxes", "activation").
- Being dazzled by initial small profits.
Short checklist for self-assessment
- Do I fully understand the investment product?
- Do I know the provider and can I clearly identify them?
- Are the promised returns realistic and plausible?
- Have I obtained a professional second opinion?
If you answer "No" to any of these questions, you should review the offer again.
What to do in an emergency?
If you suspect you have been defrauded, every minute counts.
- Inform your bank: Stop the payment, check for a chargeback. Your advisors at Deutsche Bank will support you.
- Secure evidence: Save emails, chats, screenshots, bank statements and transfer receipts.
- File a report: With the police or public prosecutor's office; additionally, report the case to your local regulator and/or local crime enforcement organisation.
- Seek legal assistance: Consult a lawyer specialising in banking and capital market law to review your claims.
- Get support and advice: Deutsche Bank, local regulators, local crime enforcement organisations, police and consumer protection agencies are available as contact points.
Who can you turn to in cases of investment fraud?
- Advisors at Deutsche Bank – for an assessment of the case and next steps.
- Your local regulator and/or local crime enforcement organisation.
- Local consumer protection agencies – for information and advice.
- Police / Online Police Station / Public Prosecutor's Office – for filing a criminal complaint quickly.
Frequently asked questions about investment fraud
Show content of How is investment fraud classified legally?
It is a criminal offence, among other things, to deceive someone about essential circumstances of a capital investment, for example, through false information in a prospectus, in order to mislead investors. If you have a suspicion, you should file a criminal complaint and secure any existing evidence. (Section 264a of the German Criminal Code (StGB) – Capital investment fraud)
Show content of What happens to my data if I have been defrauded?
In many cases, personal data such as copies of ID cards, account information or passwords are sold on or used for further fraud attempts. You should therefore change all your access data immediately, inform your bank and consider whether reporting it to the data protection authority is advisable.
Show content of How can I report fraudulent platforms or profiles?
You can report suspicious websites or social media profiles to your local regulator or crime enforcement organisation, the police or the respective platform operators. Major platforms like Facebook, Instagram or LinkedIn have their own reporting functions.
Show content of How can I warn my friends or family about investment fraud?
Speak openly about your experiences or observations. Many people underestimate the danger. Point them to reliable sources of information such as your local regulator or crime enforcement organisation, consumer protection or Deutsche Bank, and make others aware that they should never react to time pressure, guaranteed profits or unsolicited offers.
