More and more investors are falling victim to Online trading scam. Dubious platforms in particular advertise aggressively via social media (TicToc, Facebook, LinkedIn and Instagram) with unrealistic promises of returns. These offers are often backed by internationally operating gangs of fraudsters who use psychological manipulation to gain the trust of their victims - with serious financial consequences.
Our law firm specialising in banking and capital market law has been successfully representing clients who have been victims of Online trading fraud have become. In this article, we explain typical scams and how you can Online trading scam and what legal options exist for reclaiming lost money.
Typical processes in online trading fraud
The perpetrators work according to a precisely planned pattern to persuade investors to deposit ever larger amounts. Frequent steps are
1. first contact via social media
Victims are targeted with adverts and supposed success stories via Facebook, Instagram, TikTok or LinkedIn. Free webinars or "test accounts" are designed to build trust and make you believe you can make quick profits.
2. trust in chat groups
Investors are invited to join WhatsApp or Telegram groups in which other investors are supposedly already successful. In fact, they are accomplices of the fraudsters.
3. personal "account manager"
Each victim is given a supposedly competent contact person who recommends further investments and strengthens trust.
4. manipulation and pressure
The perpetrators use psychological tricks:
- Urgency: "Only available today"
- Social Proof: Fake success stories
- Feeling guilty: Subtle pressure in case of hesitation
5. transfers abroad
Victims are then often induced to transfer money to accounts in Malta, Spain, Italy, France or Lithuania
6. fake trading platforms
Proprietary platforms simulate profits and alleged price developments. Initially, profits appear and are also paid out - in reality, the prices are manipulated.
7. final phase - lockdown & loss
In the end, the platform and contact person disappear. The victims no longer have access to their deposits.
How you can recognise online trading scams
- Promise of high profits without risk
- No licensing by the BaFin or comparable supervisory authorities
- Contact exclusively via messengers such as WhatsApp or Telegram
- Constant pressure to add money
- "Success stories" that sound too good to be true
Note: Many of these cases are technically closely related to Phishing attacks (e.g. fake login pages, manipulated emails). Read more in our article Phishing: Recognising and reacting correctly.
What to do if you have become a victim of online trading fraud?
- No further payments perform
- Secure evidence: Emails, chat histories, bank transfer receipts, screenshots
- Civil law examination: Banks may be liable for breach of protection and warning obligations
- Insurance review: Have legal protection or cyber insurance checked
Dr Greger & Collegen - Your law firm for online trading fraud
Our law firm in Munich represents aggrieved investors throughout Germany and has been able to help numerous clients recover their money.
- Civil lawsuits against banks and platforms: We examine and pursue claims if banks have breached protection and warning obligations.
- Enforcement under insurance law: We check whether legal expenses or cyber insurance covers you.
- Digital expertise: Our business IT specialist analyses account structures and platforms in order to secure digital evidence and trace perpetrators.
- We prepare a legally correct criminal complaint and submit it to the specialised public prosecutor's offices for cybercrime. We also request access to files and analyse promising options for enforcing damages
Are you a victim of online trading fraud?
Contact our law firm - early legal advice significantly increases your chances of recovery.
About the author
Dr Stephan Greger is Specialist lawyer for banking and capital market law and founder of the law firm Dr Greger & Collegen in Munich.
For more than 20 years, he has represented aggrieved investors nationwide in cases of investment fraud, phishing and online trading fraud.
FAQ
Online trading fraud refers to fraudulent trading platforms that promise high returns but systematically deceive investors. Profits are only faked and the money invested disappears into foreign accounts.
Typical characteristics of trading fraud are unrealistic promises of profits, a lack of licensing by authorities such as BaFin, pressure to make quick deposits and communication only via messenger services.
Do not make any further payments, secure evidence (emails, transfers, chats) and contact a specialised lawyer immediately. Early advice increases your chances of getting your money back.
Yes, there are possibilities. We involve specialised public prosecutors to investigate the perpetrators and secure funds by freezing assets. We also handle correspondence with other authorities, such as BaFin.
We examine and enforce claims for damages under civil law against the banks and trading platforms involved. The advantage here is that they are quickly accessible and efficient.
There is also the option of settling the claim via cybersecurity insurance. This depends on the respective contractual conditions.
Yes, as online trading fraud is often organised internationally, the legal situation is complex. An experienced lawyer specialising in banking and capital market law knows the right steps to take to effectively enforce claims.
Before making any investment, check whether the platform is regulated by an official authority such as BaFin. Do not trust any unrealistic promises of returns and seek legal advice if in doubt.
English 
German