Disclaimer: The name/s with an asterisk (*) in this article were changed to protect the identity of the victim/s.​

Even though we try to stay on top of all the latest scams, everyone is still vulnerable to these fraudulent schemes.

That’s what one Melbourne man learnt the hard way after he lost $89,000 to three scam websites.

After losing a fortune in investment scams, one man is warning others about the dangers of online fraud.

‘I fell for three scams,’ he told reporters.

Michael* shared how he thought he was taking charge of his finances, and instead fell victim to sophisticated schemes.

The 49-year-old runs his own company and had a large amount of money he was planning to invest in July 2023.

He explained that a ‘very good friend’ was successfully trading on an investment website which is why he decided to give it a go.

Scams have become highly sophisticated these days. Credit: Sora Shimazaki/Pexels

‘I did my own research, and I started looking for other companies,’ he said. Michael* shared that he wanted to diversify which is why he poured his savings into two other investment companies.

Unfortunately, all three websites were fake.

Michael* said that he realised it was a scam after reading a news article and felt an inkling that the scam was happening to him as well.

Unfortunately, he also recommended the sites to three other people, including a family member, who had already invested.

The scammers manipulated the man into thinking the trading platform was real. Credit: Pixabay/Pexels

Michael* admitted he was sceptical at first but was ultimately lured into the scheme. He told reporters how he tried to warn his friend first that the investment was a scam.

‘My friend is very astute and diligent in these matters. He’s very careful, he doesn’t fall for these things. For me, that was the main factor. That trust factor was how I got into it.’

Michael* said he started with a small amount, which eventually grew as time went on. The first website was a cryptocurrency trading platform called The Financial Centre. Michael* invested AU $45,000 into the venture.

The next site he came across was called AxeMarket where he invested AU $29,000 into the scam. Lastly, he came across XProGlobal and ‘invested’ AU $15,000.

The scammers then pretended to be fund managers and advisers and contacted him directly via social media messaging sites WhatsApp and Telegram.

Be wary of online trading platforms! Credit: DS stories/Pexels

‘I got an email saying [my] balance has fallen below the threshold, and [that I’ve] got to put money in,’ Michael* explained.

But by the next morning, it was all gone.

And it happened to all three of his ‘trading accounts’ at the same time.

Scammers will create a sense of urgency to rattle the victim’s decision-making skills and manipulate them into making poor choices.

It was at this point that Michael* accused them of being scam artists.

‘When you start trading, the volumes are not high, the returns are not high, small five per cent returns, and because of that you’ll add more money, then they’ll start tempting you with higher profits, then they will say “please put in more money” to increase your trading margin,’ he explained.

The scammers Michael* dealt with understood the market and used technical jargon to make the ploy realistic.

As for Michael’s* friend who originally recommended the scam website to him, he continues to trade on the platform and refuses to believe it’s fake.

‘We’re still friends. The sad part is he is still continuing it, he told me he won’t lose anything, he put in about $500. He is wasting his time,’ Michael* shared.

Key Takeaways

• A man from Melbourne, Australia lost approximately $89,000 after falling victim to three separate scams.
• The scams used a range of sophisticated tactics to lure him in, including creating an air of urgency to manipulate his decision-making skills.
• The scammers also timed their schemes to real-market trends to add an air of legitimacy.

Stay vigilant as always, members! If you or someone you know fell victim to one of these scams, immediately report the incident to the authorities or the ACCC.

 

[Staffordshire Whippet]

Michael sounds like he's not the full quid.

 

[Ricci]

Nice to have that sort of money to lose! He must be 10 sense (cents) short of a dollar!

 

[FrankS]

He's just got more money than sense. Anyone (Well almost anyone) can be caught once - but only an idiot tries the same thing three times in the hopes of getting a different result.
Now, If he wants to get his money back 10 times over, I can honestly recommend a rock solid investment, We've got this bridge which is going up for sale because the State Government can't afford to maintain it. It's very close the the Sydney CBD and is a really First Class Investment.
It's all VERY Hush Hush as the Government doesn't want it to become common knowledge before the upcoming election. But, If you want to
get in on the ground floor, I KNOW the people to talk to ! Don't miss this once in a lifetime opportunity - Contact me A.S.A.P. - you won't be sorry.
FrankS

 

[Brian Clarke]

Get rich quickly and greed are what drives people to lose their cash. Anything remotely connected to bitcoin or any other digital currency is to be looked at with a high sense of suspicion. One has to remember that digital coins have no real substance or are something you cannot actually hold in your hands. Unlike gold etc. They are very much like the dot com boom back in the late 90's. Plenty of talk but nothing tangible about them. The scammers play on the emotions of "I must have it or there will be none left".

 

[kumfasainan]

I just read about this Aussie who lost a ton of money to investment scams. It's honestly such a bummer, and it really hits home for me. I mean, it's just so easy to fall for these things, right? You see an ad or a website that promises crazy returns, and you think, "Maybe this is the one thing that'll make me rich." But seriously, we've gotta be super careful with our money. Scams are everywhere, and they're just getting more sophisticated. I've had my fair share of close calls, and it's scary to think how much I could've lost if I hadn't done my research. Speaking of research, that's when I found stephenswmg.com. I hired a financial advisor from there who really helped me get my stuff together. It's so important to have someone with experience guiding you through the confusing world of investments.

 

[MarcoLucero]

I just read about the terrible situation that happened to Michael* from Melbourne. Losing $89,000 to investment scams is devastating, and it serves as a stark reminder of how careful we need to be when it comes to scammers. It's crucial to rely on proven and trusted ways of investing. Researching thoroughly, seeking advice from reputable financial experts, and using established investment platforms can help minimize the risk of falling into such fraudulent schemes.