One thing reveals an investment scam – Expert: “The clearest sign”

Banks are able to fight fraud even better, even though the total number of frauds has increased in recent years. In banks, for example, card and account transactions are monitored for fraudulent projects.

However, investment scams are the most challenging types of scams to monitor, because people make payments out of their own will, even if the bank tries to prevent them.

Experts name education as one of the most effective means in the fight against scams.

Nordic fraud prevention expert Sarah Helin states that prevention consists of technical solutions and cooperation in addition to education. He emphasizes that Nordea is trying to strongly increase awareness with, for example, the campaign that started in April.

Finanssiala ry Fraud prevention expert Sira Nieminen stresses that the fight against scams and fraud is a common challenge in society, not just the task of banks and authorities.

Also Financial Supervisory Authority lead supervisor Laura Linnavirta believes in the power of enlightenment.

“Through educating investors and increasing financial knowledge, people also learn to a certain extent to detect these signs themselves, when it could possibly be a scam,” says Linnavirta.

At the Market Council, experts were asked to summarize the most important warning signs of an investment scam in three points.

Nordean Helin summarizes the warning sign of an investment scam in one word: “Hurry.”

“I would say that urgency is the clearest sign. The scammer claims that it is a unique opportunity and it is now or actually yesterday. Decisions should therefore be made quickly. Hopping is therefore one of the clearest signs.”

The Finnish Financial Supervisory Authority’s Linnavirta stresses that only licensed operators may offer investment services in Finland.

“A scam can be recognized by the fact that the operator cannot find a business license”, Linnavirta underlines.

Finanssialan Nieminen raises the mysteriousness of the project as one of the most suspicious signals.

“I would say that it is suspicious if a person is forbidden to tell or told not to tell anyone about this matter. Why can’t you talk if you are investing in something?” Nieminen invites you to think.