75-year-old retiree, Derrick (whose name has been changed for anonymity), was awarded £293,650 from a devastating investment scam.
How the investment scam occurred
Concerned that his savings and pension policies would not be enough to support him through his retirement, Derrick sought investment opportunities and came across a company named 7XFX. He then contacted a representative who helped him create a trading account.
The opportunity seemed legitimate to Derrick as he would receive frequent communication via email and phone and would be transferred through different departments in the business. Unbeknownst to our client, this is a tactic employed by the scammers to enhance their credibility and make them appear as a legitimate company.
The fraudsters scheduled calls with Derrick to discuss the investment, explaining that artificial intelligence (AI) would be used to help him make a profit. As an inexperienced investor, this seemed credible to him. The scammers also advised Derrick to download AnyDesk, a remote access software that allows scammers to take control of his computer and guide him through the trading platform.
Read more: Screen Share Scams Warning
Derrick’s initial trades showed profits which prompted him to invest more. The scammers encouraged further investments by offering ‘credit’ or trading capital in return for deposits.
In early 2022, our client was told that his account had suffered a significant loss due to the Russian-Ukraine war. He was then asked to pay an additional 20% of his withdrawal amount as supposed tax, which he did, believing it would allow him to withdraw his investment. When no funds were received, Derrick sadly realised he had been scammed.
Recovering money from an investment scam
Upon realising that he had been defrauded, Derrick swiftly reported the scam to his bank, Revolut, who failed to assist in retrieving his lost funds.
Derrick then contacted CEL Solicitors, experts in fraud and scam recovery, who successfully awarded him £293,650.
Tell CEL
Unfortunately, investment scams like Derrick’s are not uncommon as fraudsters will exploit their victim’s trust and lack of bank intervention.
