Millions in Damages: Austrians Increasingly Scammed by Internet Fraudsters

During the Christmas season, fraud schemes on the internet are booming. Therefore, the Federal Criminal Police Office (BK), the Financial Market Authority (FMA), and the European Consumer Centre (EVZ) jointly warn against investment fraud on the internet. Victims of this crime often fall for fake financial sites, AI-generated content, or dubious crypto offers. Often, returns are promised that sound too good to be true.

110 Million Euros in Damage Due to Financial Fraud Last Year

According to the BK, the damage caused by such fraud models has been continuously increasing since 2021 - last year, around 110 million euros were already stolen in this way. Each victim loses an average of 53,000 euros. "Not only are there more victims, but each individual victim today loses an average of 7,000 euros more than in 2023," adds Fiona Springer from the FMA to journalists. BK Deputy Director Paul Marouschek speaks of frequently "destroyed existences," "because in many areas it concerns the last savings."

According to experts, it is almost impossible to recover stolen money - even if the perpetrators are caught. "It happens extremely quickly, the money is laundered, distributed, and gone within hours to days," warns Springer. These are organized gangs abroad, which have their own departments for money laundering or call center training. In crypto transactions, the traces are even harder to follow.

Perpetrators Build Trust

Investment fraudsters often exploit the trust of their victims, for example in the so-called "Pig Butchering." The fraudsters pose as reputable contacts on social media or dating apps to extract more and more money from the victims - sometimes over months. "In an initial phase, a totally emotional relationship is built with the victim," says BK Deputy Marouschek.

Reinhold Schranz, head of EVZ in Austria, explicitly warns against supposed tips from celebrities. With AI technologies, these can be easily faked: "Just this summer, we had several complaints about investment tips from Mirjam Weichselbraun, Armin Assinger, Armin Wolf, Arnold Schwarzenegger, Van der Bellen." Perpetrators initially demand only small amounts and also pay out returns to appear legitimate.

Sometimes, it is not over after the first act. In the "Recovery Scam," according to FMA spokesperson Springer, criminals specifically exploit the "fear of having lost everything and the hope of getting it back." Often months after the first fraud, perpetrators pose as authorities or crypto companies and pretend that the stolen money can be recovered through fee payments.

Ignore Offers Early

Prevention is the best measure, the institutions agree. A quick Google search on a financial offer is often already sufficient. "Check if this company is licensed - is it a bank? Is it a securities firm?" is Springer's recommendation. "Please do not give out any data. Do not sign up for investments that promise insanely high returns." In the fall, BK, FMA, and EVZ published a joint brochure titled "Recognizing Investment Fraud."

Caution with "Finfluencers"

The EVZ also recommends being cautious with financial tips from influencers. Many "finfluencers" give tips for "highly speculative investment products, often with total loss," but only present the high returns. One should not be impressed by the luxury goods of famous internet financial advisors either. "They show their movie star life on Instagram or the story from rags to riches," but these are often "fairy tales," staged with rented luxury cars or properties.

(APA/Red)

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