Aussie worker loses $160,000 on one investment scheme targeting mining industry workers

Disclaimer: Names in asterisk (*) were changed for privacy purposes. The article also mentions mental health concerns. Reader discretion is advised.

Scams are a scourge of modern society, preying on the hopeful and the vulnerable, and could leave a trail of devastation to their victims.

A FIFO (fly-in-fly-out) worker's story became a stark reminder of the chilling efficiency with which scammers can strip away a lifetime of savings.


Danny* shared about his harrowing experience that lost him $160,000 in savings.

His ordeal began with a phone call from an investment scheme called Validus.

Validus promised lucrative returns on investments in gold and silver, with a too-good-to-be-true promise of a 3 per cent daily return after a year of investment.


compressed-miners.jpeg
Mining industry workers often put themselves in hazardous situations. Image Credit: Pexels/Emre Baykara


'In 14 months, I put $160,000 in and was told it would be worth $800,000,' Danny lamented.

'I thought I could take it out and never have to work again.'

Instead, he got caught in a web of deceit that exploited his desire for a fresh start.
Danny was not alone in his ordeal; he knew at least six others in his circle who were also scammed, with losses ranging up to $300,000.

Losing his savings, compounded with the pain of his divorce, left Danny depressed and had suicidal ideations.


Validus targeted individuals in the mining industry, a sector known for its high wages and transient workforce.

The scammers were persistent in contacting Danny and used high-pressure sales tactics.
When Danny questioned the legitimacy of the investments, Validus said that his money was being funnelled into precious metals.

In reality, the investments were disappearing into cryptocurrency accounts.
When the scam collapsed, Danny was left with nothing but blame from the scammer and a shattered sense of trust.

He had to return to work with his dreams of retirement gone and financial security destroyed.


The scale of the scam was not limited to Danny or the mining industry.

In 2022, The Australian Securities and Investments Commission (ASIC) issued a warning about Validus and up to 200 Australians could have been victims.
Despite the warnings, the scammers continued their operations, making outlandish claims about recovering funds through court cases and other means.

Danny's encounter with Validus should remind everyone to stay vigilant about investments.

Before making any investments, ASIC advised everyone to check Moneysmart's Investor Alert list and confirm the investor's licences through ASIC's professional registers.

Unlicenced or unauthorised entities do not offer the consumer protections that come with licensed investments, including free dispute resolution services.

Be wary of high-pressure sales tactics, promises of guaranteed returns, and upfront requests for large sums of money.

If an investment opportunity seems too good to be true, it probably is.
Key Takeaways

  • An Australian FIFO worker lost $160,000 to a scam that preyed on individuals in the mining industry.
  • The scam, known as Validus, convinced victims they were investing in gold and silver for a promised 3 per cent return per day but were actually funnelled into cryptocurrency accounts.
  • The Australian Securities and Investments Commission (ASIC) issued a warning about Validus last November 2022.
  • ASIC encouraged investors to check Moneysmart's Investor Alert list before making investments.
For those who went through distressing events like Danny, please reach out for help. You may contact emergency services at 000.

Lifeline is also available through their landline number 13 11 14 or lifeline.org.au.
 
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Validus promised lucrative returns on investments in gold and silver, with a too-good-to-be-true promise of a 3 per cent daily return after a year of investment.
Too good to be true hmmmm. 🤔
Greed can make some people blind to obvious warning signs. Whilst people are greedy the scammers will continue to flourish.
 
Sounded to good to be true. I am very sorry for this man, but anything like that with the promise of big returns would send me into red flags area. Also why invest all you savings. I truly don't understand how people get so taken in by theses evil scammers.
Kind regards to all Vicki
 
I checked Moneysmart's Investor Alert list and Validus wasn't listed, however there was an additional link to the IOSCO which is a global Investor Alert list where Validus was listed with warnings in New Zealand. It looks like you need to do your due diligence. Useful tools I think
 
Validus promised lucrative returns on investments in gold and silver, with a too-good-to-be-true promise of a 3 per cent daily return after a year of investment.
Too good to be true hmmmm. 🤔
Greed can make some people blind to obvious warning signs. Whilst people are greedy the scammers will continue to flourish.
I GOT CHASTISED FOR USING THE WORD GREEDY. BE CAREFUL. I AGREE WITH YOU.
 
How are people still getting caught out by scammers who promise too good to be true rewards? Do they only see $ signs flashing in their face, and all common sense flies out the window? I can’t believe there are still so many gullible people around getting caught out by these scammers. They really only have themselves to blame for losing their money as there are daily reminders everywhere, in all forms of media about, about being careful with anything to do with investing your money.
 
How are people still getting caught out by scammers who promise too good to be true rewards? Do they only see $ signs flashing in their face, and all common sense flies out the window? I can’t believe there are still so many gullible people around getting caught out by these scammers. They really only have themselves to blame for losing their money as there are daily reminders everywhere, in all forms of media about, about being careful with anything to do with investing your money.
ignorance and greed. and fancy going public and showing your idiocy.
 
If it sounds too good to be true, then sadly it usually is. If you wish to invest in gold and silver, or platinum then buy gold, silver or platinum coins or ingots from reputable dealers. The provenance and low mintage of some coins and ingots is a long-term financial strategy. However, the price of gold, silver and platinum have been consistently increasing in value over the years. This has been a favorite investment strategy for many people in many countries over the years. Most important "Ensure you lock your investments away safely". Reap the rewards. If you buy one ingot or coin a week ($40 to $60) and lock it away safely in a safe or the banks safe box's and watch your investment grow.
 
So what happened to the scammers? Did they get caught and jailed as they should. And why was this Valadius company still allowed to do business when back in 2022 ASIC had warned against their business practices and ethics?
 
Yes. $160000 on a 4/1 pop at the Randwick Races. And it doesn't take 12 months but a mere 3 minutes maximum.
We used to go to the trotts at Harold Park and if we won we went to the races on Saturday and if we had a win there sometimes we would head to Wentworth Park dogs.

We now have no clue what horse is what but decide to go and have fun. And it's at least free entry now.
We are limiting ourselves to $100 each
 
Validus promised lucrative returns on investments in gold and silver, with a too-good-to-be-true promise of a 3 per cent daily return after a year of investment.
Too good to be true hmmmm. 🤔
Greed can make some people blind to obvious warning signs. Whilst people are greedy the scammers will continue to flourish.
While people fail to do their own research and contact companies themselves to check everything out, get a lawyer to look over things if they are that serious about investing and don't fully understand what is involved, then scammers will continue.
 
We used to go to the trotts at Harold Park and if we won we went to the races on Saturday and if we had a win there sometimes we would head to Wentworth Park dogs.

We now have no clue what horse is what but decide to go and have fun. And it's at least free entry now.
We are limiting ourselves to $100 each
Yes, that is fun. I was out at lunch, walked past a poker machine. Wouldn’t know the first thing about them. I put in 5cents change from my lunch. I won $50! I quickly put it away and bought myself a new outfit!🤗
 

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