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Securities Lawyer for Victims of Internet Fraud
While the internet has made investing easier than ever, investing online also poses a wide range of significant risks. Online investment scams are common, and they often look very much like legitimate investment opportunities. If you are a victim of internet fraud, a securities lawyer at Zamansky LLC may be able to help you recover your losses, and we strongly encourage you to contact us promptly.
Common Internet Securities Fraud Scams
Internet securities fraud scams can take a variety of different forms. While these scams are becoming increasingly sophisticated—and they are increasingly involving new investments such as initial coin offerings (ICOs)—many still have the same fundamental hallmarks of fraud.
With that said, as internet securities fraud scams become both more sophisticated and more common, they are also becoming more difficult to differentiate from legitimate securities offerings in many cases. If you have been defrauded, you are not alone, and you will want to talk to a securities lawyer about the options you have available.
Our securities lawyers handle internet fraud cases involving:
Unregistered Securities Offerings
Most public securities offerings must be registered with the U.S. Securities and Exchange Commission (SEC). Those that do not have to be registered, such as offerings under Rule 506(c) of Regulation D, are subject to strict rules, restrictions and requirements. As a result, many unregistered securities offerings promoted online are fraudulent.
Unregistered Coin Offerings
Unregistered coin offerings are becoming increasingly common, and they violate the SEC’s registration and disclosure rules in many (if not most) cases. While cryptocurrencies themselves do not necessarily qualify as securities (and while there are also non-securities-related crypto schemes), ICOs and other securitized offerings can give rise to claims for securities fraud.
Fake Investment Opportunities
Some online investment “opportunities” are completely fake. In these cases, the securities involved aren’t just unregistered—but they don’t actually exist. These will often appear to be legitimate securities offerings, and the perpetrators may even create fake websites and social media accounts that appear to confirm the offering’s legitimacy. However, upon further investigation, it will become clear that the whole thing is a scam.
Fraudulent Investment Advisors
In addition to handling cases involving fraudulent securities offerings, we also handle cases involving fraudulent investment advisors. If someone claiming to be an investment advisor has lost (or stolen) your funds, it will be important for you to seek help from a securities lawyer as soon as possible. Here, too, fake websites and profiles may appear to confirm that an investment advisor is legitimate; however, a search of FINRA BrokerCheck® will reveal that the “advisor” is not (and has never been) registered.
Social Media Investment Scams
Facebook, Instagram, TikTok, X and YouTube have become popular tools for investment scammers to target retail investors. Any time you learn about an investment opportunity through social media—and especially if you receive a direct solicitation—you need to be extremely cautious about investing. Many investment opportunities promoted on social media are fraudulent, and, even if a well-known celebrity or influencer is promoting the opportunity, this does not necessarily mean that it is safe.
Email Investment Scams
While social media investment scams have proliferated in recent years, email investment scams remain common as well. These scams often target specific populations, such as senior investors or individuals who have a particular religious or political affiliation. Just like investment solicitations on social media, if you receive a direct solicitation to invest via email, this should be viewed as a major red flag.
Fraud Perpetrated Through Message Boards and Chats
Scam artists often use message boards and chats to promote fraudulent investment offerings as well. This includes (but is not limited to) promoting fraudulent offerings such as:
- Affinity fraud schemes
- Pump and dump schemes
- Ponzi schemes and pyramid schemes
- Promises of “guaranteed” returns
- Securities or coins that don’t exist
All of these fraudulent offerings can easily trick unsuspecting investors, and they can leave investors facing significant financial losses. If you have been tricked into an internet investment scam, you should not be hesitant to come forward. Our lawyers regularly speak with investors who are in your situation, and, once you get in touch, a securities lawyer at our firm will be able to determine what legal action we can take to pursue a financial recovery on your behalf.
Recovering Your Losses if You are a Victim of Internet Securities Fraud
As a victim (or potential victim) of internet securities fraud, there are a few steps you will want to take right away. To help maximize your chances of recovering your fraudulent investment losses, you should:
- Preserve as Much Documentation as Possible – If you have emails, direct messages or other online communications, be sure to keep these—and consider printing copies or saving PDF files. If you can take screenshots of websites, social media accounts, message boards or any other content you viewed online, do this as well. The more documentation you can keep, the better.
- Take Detailed Notes – Along with preserving as much documentation as possible, you should also take detailed notes. Write down as many details as you can about how you learned about the investment opportunity, when you decided to invest and when you started to have concerns about potential fraud.
- Talk to a Securities Lawyer as Soon as Possible – Seeking to recover your fraudulent investment losses will require experienced legal representation. Again, you will want to take action as soon as possible. You can get started with a free consultation; and, in most cases, it costs nothing out-of-pocket to hire a securities lawyer to represent you in this scenario.
Schedule a Free Consultation with a Securities Lawyer at Zamansky LLC
If you need a securities lawyer who can help you seek to recover losses from an internet fraud scheme, we invite you to get in touch. To schedule a free consultation with a securities lawyer at Zamansky LLC as soon as possible, call us at 212-742-1414 or tell us how we can reach you online now.