In recent years, investment scams involving cryptocurrency and other financial instruments have become increasingly popular in Bulgaria. These scams often take place on social media platforms such as Facebook, Telegram, Viber, and WhatsApp, where fraudsters promise high returns to potential investors. In reality, the money is typically used for personal gain by the scammers or to repay earlier investors in a classic Ponzi scheme.
Many of these scams also involve fake websites that appear legitimate but are actually fraudulent investment platforms. The Bulgarian General Directorate for Combating Organized Crime has published a list of such websites, which often trick unsuspecting users into investing.
Common Types of Investment Scams
- Fake Sales Platforms and Malware
One of the simplest and most common scams involves the sale of goods through various online platforms. Scammers entice users to make payments by asking them to provide bank account or card details, or to pay a deposit for goods that are never delivered. Often, these fraudulent offers are advertised through Facebook ads promising unrealistic returns on investments.
In these cases, victims are usually directed to fake cryptocurrency or forex websites, or they are asked to install apps that appear legitimate. Unfortunately, these apps are often malware that steal users’ bank details, leaving them with drained accounts without their knowledge. These cases typically involve classic automated cyber crime, where funds are stolen directly from victims’ accounts without any actual investment.
- Social Engineering Scams
Another common type of scam involves social engineering, where real people—not algorithms—target victims. In these scams, fraudsters initiate contact through phone calls (often from overseas numbers), emails, or encrypted messaging apps like Facebook Messenger and Telegram. The fraudsters convince victims to make small investments, often between €300 and €500, by transferring money to a specified bank account.
To build trust, the scammers might return a larger sum (e.g., €600) to the victim, making it seem like the investment is genuine. Once the victim is convinced of the legitimacy, they are encouraged to invest larger amounts. Unfortunately, these larger investments are never returned. In some cases, the fraudsters go even further, claiming that extra funds are needed to cover bank charges or administrative fees for transferring the profits.
- The Role of Human Greed
One key reason why these scams succeed is the natural human tendency toward greed. Victims often overlook warning signs due to the enticing promise of high returns. The desire for a quick and large profit clouds their judgment, and they fail to consider the age-old adage, “If it sounds too good to be true, it probably is.”
Consequences and Recovery
Once victims realize they’ve been scammed, they often feel helpless and desperate to recover their lost funds. Unfortunately, many people don’t seek professional help and instead take ineffective actions, such as filing complaints with authorities that are not equipped to handle such cases.
It is important to note that while some authorities may have the legal power to investigate online fraud, they often lack the expertise needed to address complex cases of investment scams effectively.
How Lawyers Can Help
Specialized digital lawyers with expertise in internet law, cyber transactions and fraud can offer significant assistance in these cases. They can help both before and after a scam takes place.
Before becoming a victim, a lawyer can conduct preliminary research on an investment scheme to determine whether it is legitimate. If you’ve already lost money, they can:
- Assist in drafting a strong complaint to the relevant authorities capable of investigating online fraud.
- Conduct a comprehensive investigation to identify the individuals behind the scam and explore options for recovering stolen funds, either in full or in part.
- Analyse your case thoroughly and assess the likelihood of success if you decide to pursue legal action, including options for securing assets or obtaining injunctions to help recover your investment.
Final Thoughts
In summary, investment scams in Bulgaria, particularly those involving cryptocurrencies, are becoming more sophisticated and widespread on social media platforms. To avoid falling victim, it is crucial to exercise caution, question unrealistic promises of high returns, and verify the legitimacy of any investment opportunity before handing over any money.
If you suspect you’ve been defrauded, seeking professional legal assistance can significantly increase your chances of recovering your lost funds and bringing the scammers to justice.
