Investment fraud

In recent years, the number of investment fraud cases has increased significantly in Estonia. According to the Police and Border Guard Board, people in Estonia lost more than four million euros to investment fraud in 2024. The actual damage might be much greater because not all victims go to the police.

What is investment fraud?

Investment fraud offers the victim a seemingly excellent investment opportunity, promising a low-risk or risk-free investment and a guaranteed return. However, the real aim of the criminals is to steal the victim’s money. Such investment opportunities may be offered in the form of cryptocurrencies, stocks, or bonds, which the criminal presents as a new product, technology, or business opportunity.

A tempting investment offer can come through many different channels, such as by phone or email, social media, or even when surfing the internet. The offer redirects the victim to an investment platform (this could be a website or an app, which could also be available on a fully official app store).

On the fake platform, the victim makes an unsuspecting investment or enters personal information, including bank account details. Often, the victim will also receive a phone call from the scammer during the scam. The criminals build a trusting relationship with the victim and take advantage of their limited financial knowledge to get them to make investment decisions. Another common method is for scammers to contact the victim on social media and establish trust, which then leads to talk of a lucrative investment opportunity.

Warning signs:

• you receive an investment offer via a phone call, social media, or a social networking app that promises a fast return and a secure investment;
• you are promised very high returns and a unique/personal or secret opportunity;
• you will be pressured to invest quickly, as the offer is only available for a short time;
• you will not find any additional information or comments about the investment page, the offered product, or the company;
• communication takes place in a foreign language and they refuse to switch to Estonian;
• no contract is concluded and no investment terms are shared;
• you will be asked to install software on your device, which in reality allows the criminal to control the device.

How to protect yourself?

• If you receive a phone call offering investment opportunities, hang up immediately. Also, do not reply to emails and messages inviting you to deposit money;
• do not share your personal information (ID card details, bank card details, PINs, etc.);
• be careful when installing unfamiliar or suspicious software on your device;
• take your time before making investment decisions and research the background of the offer thoroughly;
• be critical of offers promising ‘quick riches and a safe investment’;
• if you have fallen victim to investment fraud, contact your bank immediately, using the contact details on the official website of the bank, and report it to the police at https://cyber.politsei.ee/.

Here is an example of an investment fraud where the victim lost €26,000:

Activity	Example
The victim sees an ad on Facebook for a fake page in the Delfi portal about a gruesome crime.
The victim clicks on the ad and lands on the fake Delfi page. At this point, you should already notice that this is not the official delfi.ee website, but a fake site imitating the real one.
At the end of the article on the fake Delfi site, there is a link and an advertisement for an ‘investment platform’, through which the author of the article had allegedly earned €100,000 in a year. The victim took out a loan and started ‘investing’ through the portal. On the platform, the victim was shown how their investments were growing. The victim realised that they had been scammed only when they failed to withdraw the original investment from the platform.