avoid investment scams

At Xbase Digital, the safety of our valued customers is our top priority. Your security is paramount, and we use advanced technology and adhere to rigorous compliance procedures to protect your data and ensure its confidentiality. This material aims to equip you with the knowledge to stay vigilant and safeguard against fraud and scam attempts. Please read it carefully and keep the following information in mind.

what is an investment scam?

An investment scam is when somebody offers you a fake opportunity to make profit after you hand over a sum of money. An investment scam can be considered as fraud, and fraud is defined as a deliberate act of deception intended for personal gain or to cause a loss to another party (Source: Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law OJ L 198, 28.7.2017, p. 29–41, art 3(2)).

key points to avoid investment scams:

1. Unsolicited Contact:
Be wary of unsolicited investment offers via phone calls, social media, email, or text messages. Legitimate advisors will not cold call or text you about investment opportunities. If contacted in this manner, it is strongly advised to end the communication immediately.]

2. Firm Registration:
Always verify if the firm is registered with the financial supervisory authority. Firms not registered or registered in offshore jurisdictions are likely fraudulent.

3. Warning Lists and Reviews:
Check if the firm is listed on warning lists issued by your financial supervisory authority. Search online for the firm’s name along with terms like “scam” or “fraud” to identify any negative reviews or warnings.

4. Understanding the Product:
Avoid investing in products you do not understand. Fraudulent schemes often involve complex and novel products, particularly related to cryptocurrency or foreign exchange (forex).

5. Trusted Advice:
Only take investment advice from long-time known and trusted financial advisors, bankers, or lawyers. Avoid advice from unknown third parties and always consult your trusted advisor about the opportunity.

6. Pressure to Invest:
Be cautious of pressure to make quick investment decisions, especially with promises of bonuses or limited-time offers. High-pressure tactics are a major red flag.

7. Unrealistic Returns:
Promises of high or unrealistic returns on investments are often indicative of a scam. If it sounds too good to be true, it probably is.

8. Downplaying Risks:
If the risk of loss is downplayed or presented as non-existent, it is a major warning sign to avoid the firm.

9. Withdrawal Taxes:
Scammers may ask for additional funds or taxes for withdrawing profits. Avoid any firm making such requests.

10. Software Downloads:
Never install any software, especially those facilitating remote control (like Anydesk, TeamViewer), for investment purposes. This can give scammers access to your banking information.

11. Unknown Websites and Apps:
Avoid registering on unknown websites or downloading dubious apps for trading or investment purposes. Always verify the legitimacy of any site or app before use.

12. Power of Attorney:
Never provide a Power of Attorney to any third party for managing your accounts.

13. Unknown Recipients:
Never transfer funds to a different firm than the one you are investing with. If asked to do so, immediately discontinue the engagement.

14. Follow-Up Scams:
If you’ve been scammed, fraudsters may share your details with other scammers. Be wary of any follow-up contacts offering help to recover funds or new investment opportunities.

what to do if you suspect a scam:

If you believe you might be a victim of an investment scam or suspect someone to be an investment scammer, please contact us immediately at support@xbase.digital. Discontinue any further relations immediately and seek legal advice.

Stay vigilant and protect yourself from scams