Is it Possible to Recover Funds from Trading & Investment Frauds?

Every year, thousands of innocent people fall prey to trading and investment frauds. As per the statistics published by the United States Sentencing Commission, investment fraud has increased by nearly 14% since 2015.

Investment fraud is a fast-rising crime that takes advantage of challenging economic conditions to dupe vulnerable people. The victims are generally those with little to no knowledge of financial markets and instruments.

Recovering money lost to these frauds can be challenging. The best option is to be alert and avoid these scams completely. However, if you have become a victim of fraud, you can take a few steps to recover your funds. You may be able to recover some of the money, if not all. 

Let’s look at some common types of fraud before we understand the steps to take for funds recovery.

Types of Trading & Investment Frauds

These scams can take various forms but the uniting features are the promise of high returns with very low risks. Some common trading and investment frauds take the form of high-yield investment programs, pre-IPO investment schemes, foreign currency trading opportunities, and precious metal buying scams.

These can also include Ponzi schemes, pump and dump schemes as well as advance fee frauds.

While the U.S Securities and Exchange Commission and the Commodity Futures Trading Commission do their best to raise awareness of such frauds, many people still become victims.

Resources for Victims

Recovering funds lost to frauds can be tedious and tricky. As soon as you become aware of the fraud, you should immediately report the individual or organization to the relevant authorities. If you have made the payment on a credit card or a cheque, you can get in touch with your bank and request them to block the payment. 

If the payment has been made already, gather all possible evidence on the person or the organization to be able to file a police case.

If you are a part of a group fraud, you can together file a class action lawsuit. If you’re a single victim, you can file a lawsuit through an investment lawyer. These actions can help with some money recovery, depending on how much is recovered from the scammer. These options work if you can get hold of the fraudster.

You can look at hiring an asset recovery company. These companies charge a fee but they specialize in recovering funds lost to trading and investment scams. They conduct detailed investigations and work with legal experts as well as local authorities to get your money back.