How one man lost his $500,000 retirement savings to an investment scam: ‘It’s like being brainwashed’
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Disclaimer: Names with an asterisk (*) have been changed to protect the identity of the people involved in the story.
The world of online investment can hold vast promise for some and be fraught with danger for others—especially when one falls unwittingly into a scammer’s trap.
Such is the case for one Queensland resident when a recent investment he hoped would turn his life for the better actually led to him losing out big time.
In a heartbreaking turn of events, Queensland resident Ben* was left dealing with the harsh reality of losing a staggering $500,000 from his hard-earned retirement savings.
The 66-year-old fell for a cunning investment scam that was camouflaged as a legitimate opportunity on social media.
The promise of securing a ‘passive income’ for both himself and his children in retirement led Ben to engage with individuals posing as account managers from the supposed investment firm.
Little did he know that this encounter would result in a significant financial setback.
In an interview, Ben* revealed that he was feeling particularly vulnerable at the time.
While he was still mourning the loss of his wife to cancer, he found himself ensnared in the web of fraudulent promises and deceptive tactics.
According to reports, the fraudulent investment site that conned Ben*, although now removed from Google search, continues to operate through a specific URL.
This scam is one of numerous schemes that mimic legitimate investment firms, adopting similar operating structures and employing convincing ‘managers’ to lure unsuspecting victims into their traps, convincing them to ‘invest’ their funds.
The deceitful investors entice victims to create investment trading accounts, where they manipulate conversations to simulate financial growth on a fabricated version of a genuine platform.
For instance, someone investing $100 may see their account purportedly grow to $120 within three days.
The articulate scammers will then play the role of account managers, maintaining constant communication to quell any doubts.
When victims request the release of their funds, the scammers introduce a catch—insisting on paying down ‘credits’ or fulfilling a ‘contract’ before releasing the funds, only to withhold the money afterwards.
‘It was almost like hypnotism...like being brainwashed,’ shared Ben*.
‘It wasn't until my bank stepped in and said hang on, wait a minute, you're being scammed here... and they stopped everything.’
‘That's when I snapped out of it, and by that time, it was all too late,’ he added.
In April, Ben* started his investment with a counterfeit investment firm, gradually transferring $500,000.
However, his trajectory took an unforeseen turn when both his bank and the scam prevention agency Revolut intervened in late July.
Despite being forewarned by authorities about the potential scam, Ben* proceeded with a payment, rendering him unable to recover his funds.
Reflecting on his experience, Ben* admitted that he should have conducted more research and labelled his actions as ‘st***d’.
He also said the scammers were so ‘smart and clever’.
‘Once people get entrapped into this, you get to a point where you either stop and count your loss or you keep going and try and make it work,’ noted Ben*.
‘That's when I found myself in some financial difficulty. I've been told the money is there, but I can't have access... There's no mercy with these people.’
In the aftermath of the scam, Ben* felt like he was on an emotional rollercoaster.
Despite the urge to share, he chose to keep the incident from his adult children due to feelings of embarrassment and shame, which added another layer to his complex ordeal.
‘I'm okay, sort of, I'll survive, but the guilt that I feel that I've lost everything that my wife passed away for (and) the inability now to help my children...’
Ben* also shared he fell into a ‘deep depression’.
However, he's finding support from a caring friend, drawing strength from his Christian faith, and seeking guidance from a counsellor to go through this challenging period.
‘I'm trying to focus every day on what's important in life,’ said Ben*.
‘I've never been a money person... I've never really put that much importance on being rich and having this or that or ever Keeping Up with the Joneses.’
Ben* shared that he's taken on more shifts and expects to keep working for the foreseeable future, stating he will likely continue until he ‘falls off the perch’.
While he remains confident in his financial situation, owning his home and car, he underscored that it's his children and the charities he planned to support are the ‘losers in this’ unfortunate situation.
Ben*, driven by the desire to prevent others from repeating his mistakes, shared valuable advice when considering investment offers on social media.
He urged people to be sceptical and to consult Google reviews and seek professional advice, particularly from accountants, before venturing into any financial commitments.
Scamwatch reported a concerning shift in Australia, with a massive $568 million loss to scams in 2022, of which $379 million (67 per cent) is attributed to investment scams.
This worrying pattern continues into 2023, with an additional $241 million lost to investment scams.
The actual figures may be higher, as Nelson Yiannakou of Revolut suspected underreporting, potentially tripling the losses.
‘We will never, in my opinion, outrun scammers, but we will always attempt to outsmart them,’ Yiannakou said.
Yiannakou recognised the rise in scams compared to fraud, with scammers manipulating victims through schemes labelled as ‘special’ and ‘unique’, leading individuals astray.
‘So one of the most important things is that the financial services organisations... step in and intervene with customers,’ he said.
He asked financial organisations to support customers lacking the necessary literacy and technological skills in the face of this escalating issue.
‘Unfortunately, a lot of these customers, they're not computer literate, financially literate, technology savvy.’
He also highlighted the importance of holding social media and telecommunication companies accountable for scams originating from platforms like social media, phone, or email.
Additionally, he called for increased support from law enforcement for scam victims.
Meta, the parent company overseeing Facebook and Instagram, stated that it has removed content deliberately meant to deceive, willfully misrepresent, or exploit others for financial gain or property.
Meta, on its transparency centre website, said: ‘In an effort to prevent fraudulent activity on the platform that can harm people or businesses, we remove content and action on behaviours that intend to defraud users or third parties.’
‘This includes content that seeks to coordinate or promote these activities using our platform.’
‘We allow people to raise awareness and educate others as well as condemn these activities unless this includes content that contains sensitive information, such as personally identifiable information.’
Members, if you have experienced a scam or know someone who has, we encourage you to fill out a form on police websites or easily report it on Scamwatch here.
Your cooperation is crucial in addressing these issues.
Members, what are your thoughts on this story? Have you encountered investment scams on social media? How do you keep yourself safe? Share your tips in the comments below!
The world of online investment can hold vast promise for some and be fraught with danger for others—especially when one falls unwittingly into a scammer’s trap.
Such is the case for one Queensland resident when a recent investment he hoped would turn his life for the better actually led to him losing out big time.
In a heartbreaking turn of events, Queensland resident Ben* was left dealing with the harsh reality of losing a staggering $500,000 from his hard-earned retirement savings.
The 66-year-old fell for a cunning investment scam that was camouflaged as a legitimate opportunity on social media.
The promise of securing a ‘passive income’ for both himself and his children in retirement led Ben to engage with individuals posing as account managers from the supposed investment firm.
Little did he know that this encounter would result in a significant financial setback.
The 66-year-old Ben* lost $500k, thinking it was a legitimate investment firm online. Image source: Pixabay
In an interview, Ben* revealed that he was feeling particularly vulnerable at the time.
While he was still mourning the loss of his wife to cancer, he found himself ensnared in the web of fraudulent promises and deceptive tactics.
According to reports, the fraudulent investment site that conned Ben*, although now removed from Google search, continues to operate through a specific URL.
This scam is one of numerous schemes that mimic legitimate investment firms, adopting similar operating structures and employing convincing ‘managers’ to lure unsuspecting victims into their traps, convincing them to ‘invest’ their funds.
The deceitful investors entice victims to create investment trading accounts, where they manipulate conversations to simulate financial growth on a fabricated version of a genuine platform.
For instance, someone investing $100 may see their account purportedly grow to $120 within three days.
The articulate scammers will then play the role of account managers, maintaining constant communication to quell any doubts.
When victims request the release of their funds, the scammers introduce a catch—insisting on paying down ‘credits’ or fulfilling a ‘contract’ before releasing the funds, only to withhold the money afterwards.
‘It was almost like hypnotism...like being brainwashed,’ shared Ben*.
‘It wasn't until my bank stepped in and said hang on, wait a minute, you're being scammed here... and they stopped everything.’
‘That's when I snapped out of it, and by that time, it was all too late,’ he added.
In April, Ben* started his investment with a counterfeit investment firm, gradually transferring $500,000.
However, his trajectory took an unforeseen turn when both his bank and the scam prevention agency Revolut intervened in late July.
Despite being forewarned by authorities about the potential scam, Ben* proceeded with a payment, rendering him unable to recover his funds.
Reflecting on his experience, Ben* admitted that he should have conducted more research and labelled his actions as ‘st***d’.
He also said the scammers were so ‘smart and clever’.
‘Once people get entrapped into this, you get to a point where you either stop and count your loss or you keep going and try and make it work,’ noted Ben*.
‘That's when I found myself in some financial difficulty. I've been told the money is there, but I can't have access... There's no mercy with these people.’
In the aftermath of the scam, Ben* felt like he was on an emotional rollercoaster.
Despite the urge to share, he chose to keep the incident from his adult children due to feelings of embarrassment and shame, which added another layer to his complex ordeal.
‘I'm okay, sort of, I'll survive, but the guilt that I feel that I've lost everything that my wife passed away for (and) the inability now to help my children...’
Ben* also shared he fell into a ‘deep depression’.
However, he's finding support from a caring friend, drawing strength from his Christian faith, and seeking guidance from a counsellor to go through this challenging period.
‘I'm trying to focus every day on what's important in life,’ said Ben*.
‘I've never been a money person... I've never really put that much importance on being rich and having this or that or ever Keeping Up with the Joneses.’
Ben* shared that he's taken on more shifts and expects to keep working for the foreseeable future, stating he will likely continue until he ‘falls off the perch’.
While he remains confident in his financial situation, owning his home and car, he underscored that it's his children and the charities he planned to support are the ‘losers in this’ unfortunate situation.
Ben*, driven by the desire to prevent others from repeating his mistakes, shared valuable advice when considering investment offers on social media.
He urged people to be sceptical and to consult Google reviews and seek professional advice, particularly from accountants, before venturing into any financial commitments.
Ben* advised consulting accountants before committing to online investments. Image source: Pixabay
Scamwatch reported a concerning shift in Australia, with a massive $568 million loss to scams in 2022, of which $379 million (67 per cent) is attributed to investment scams.
This worrying pattern continues into 2023, with an additional $241 million lost to investment scams.
The actual figures may be higher, as Nelson Yiannakou of Revolut suspected underreporting, potentially tripling the losses.
‘We will never, in my opinion, outrun scammers, but we will always attempt to outsmart them,’ Yiannakou said.
Yiannakou recognised the rise in scams compared to fraud, with scammers manipulating victims through schemes labelled as ‘special’ and ‘unique’, leading individuals astray.
‘So one of the most important things is that the financial services organisations... step in and intervene with customers,’ he said.
He asked financial organisations to support customers lacking the necessary literacy and technological skills in the face of this escalating issue.
‘Unfortunately, a lot of these customers, they're not computer literate, financially literate, technology savvy.’
He also highlighted the importance of holding social media and telecommunication companies accountable for scams originating from platforms like social media, phone, or email.
Additionally, he called for increased support from law enforcement for scam victims.
Meta, the parent company overseeing Facebook and Instagram, stated that it has removed content deliberately meant to deceive, willfully misrepresent, or exploit others for financial gain or property.
Meta, on its transparency centre website, said: ‘In an effort to prevent fraudulent activity on the platform that can harm people or businesses, we remove content and action on behaviours that intend to defraud users or third parties.’
‘This includes content that seeks to coordinate or promote these activities using our platform.’
‘We allow people to raise awareness and educate others as well as condemn these activities unless this includes content that contains sensitive information, such as personally identifiable information.’
Members, if you have experienced a scam or know someone who has, we encourage you to fill out a form on police websites or easily report it on Scamwatch here.
Your cooperation is crucial in addressing these issues.
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