FUND MANAGEMENT SCAMS

Albeit a legitimate investment vehicle, Fund Management and investment funds are one of the oldest and most prominent investment vehicles scammers use to scam investors out of their hard earned money.

Using investor’s appetite for earnings and their lack of experience in the financial services, having someone more experienced invest their funds for them often makes this a no brainer scam model.

How they operate

An experienced fund manager or automated trading software/s is presented to investors as a one stop solution to put their funds to work and earn high rewards.

It’s not rare for these scammers to promote high returns in very short periods of time, often times even showing examples or screenshots of real trading platforms with gains of over 100%.

They back up their claims with fake testimonials, third party websites whom promote their performances or bogus auditing firms confirming the accounts exist or the gains are legitimate.

These are elaborate scams and scammers are aware that it takes time to build investor confidence levels up to a point where they invest the “real monies” after an initial test (smaller) investment.

This is what makes this scam so hard to spot as scammers invest in websites and branding to ensure that it all seems legitimate on the surface and often they even start moving funds between investors to show gains to prove the legitimacy and accuracy of their fund.

Once they’ve built enough investor confidence and convinced investors to invest larger sums, they simply disappear.

There are variations of this scam and scammers tend to get very creative with scams.

How to spot the scam

First rule is logic. Anyone promising something too good to be true, this is usually the first sign that something is off.

Secondly, funds are required to be regulated globally. If they don’t have regulation, this should be your first sign that this is not a legitimate fund. Regardless of what they sell you, there is no excuse not to be regulated.

Anyone that has a product that doubles their money every few months, does not require any other investors to invest with the fund manager as just with their own funds, they will earn millions when they keep doubling their investment.

To summarize these are usually signs that something is off:

  • Massive gains over a very short period of time
  • How they got your details- if they contacted you, this is a warning sign
  • No regulation, based offshore
  • High pressure sales tactics
  • Presented as very secretive / exclusive opportunity with limited spaces available
  • No history or online information about the company or the people involved

There are ways to ensure that you don’t fall victim to Fund Management Scams, sometimes it’s best to simply ask a third party such as an accountant or lawyer friend or someone who is not connected to the fund in question. Ask yourself it it’s too good to be true and if you have that little feeling in your gut, this is most likely a scam.

Dear Clients,

Kindly note that Aurora Capital Finances will not continue to provide any trading services at this time.

Company Closure procedures have been put in place, and all trading accounts will be closed by 01 February 2024.

Should you require any assistance, please contact the Support department on email:
[email protected]