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.

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.

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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.

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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.

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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.

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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.

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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.

 

[Jennylolo]

and this is done over the phone. You don't even get to them or documentation, etc etc. Why take a risk over the phone. Can't be legit.

 

[Staffordshire Whippet]

Damn! Opportunity missed..... I had this Bridge down in Sydney going for an absolute baaaaaargain......

 

[Kevin. A.]

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?

My strategy for scammers is long term pain and suffering, this may give them an indication of pain and suffering they have inflicted upon their victims. Staked over a meat ants' nest, baste with honey and leave for a very long time. If caught a second time scamming, then follow the above steps and leave till, they rot. No sympathy for these low lives. I think this is all part of the problem there are few deterrents for scammers if they are lucky, they might get a slap across the wrist.