Recovering From Security Fraud: Getting Your Money Back

If you've been defrauded by a security investment, there are several steps you can take to recover your funds. It's important to act quickly, as perpetrators often dispose of stolen money immediately. Reporting the fraud to the relevant authorities is crucial, and you should also gather evidence and documentation to support your case. You may need to contact your bank or credit card company to block access to your accounts and protect your identity. Seeking legal assistance from an experienced attorney can improve your chances of recovering your assets, and there are also government organisations and non-profits that can help. While recovering your funds may be challenging, taking swift and decisive action can improve your chances of success.

Report the fraud to law enforcement and regulatory agencies

It is important to report investment fraud to law enforcement to begin the recovery process, ensure the responsible parties are investigated, and prevent further damage to other individuals. There are several agencies that you can contact to report the fraud.

Local Law Enforcement: Contact any local law enforcement office to file a police report.

District Attorney: Contact your local district attorney's office.

Attorney General: Contact your state's attorney general's consumer protection and prosecution units to report the fraud.

Federal Law Enforcement: Contact your local FBI field office or submit an online tip. You can also file a complaint through the FBI’s Internet Crime Complaint Center.

U.S. Securities and Exchange Commission (SEC): File a complaint or call (800) SEC-0330.

FINRA: Call (844) 574-3577 or file a tip.

North American Securities Administrators Association (NASAA): Call (202) 737-0900 or file a complaint.

National Association of Insurance Commissioners: Report fraud or file a complaint to your state commissioner.

National Futures Association: Call (312) 781-1410 or file a complaint.

U.S. Commodity Futures Trading Commission: Call (866) 366-2382 or file a tip or complaint.

Federal Trade Commission (FTC): File a report or call (877) 382-4357.

Reporting the fraud to law enforcement and regulatory agencies is crucial, as it helps stop the fraud, prevent further harm to consumers, and pursue the criminals. It is also important to note that you should not be embarrassed to report investment fraud. Many people have been victims of financial scams or may have been targeted themselves. By reporting the fraud, you can also protect your future financial health and assets and begin your emotional recovery from the crime.

Gather evidence and create a file with all relevant documentation

Gathering evidence and creating a file of all relevant documentation is a crucial step in recovering funds from security fraud investment. Here are some detailed instructions on how to go about this process:

Firstly, create a secure file that will contain all the information related to the fraud. This file should be kept in a safe place, such as a locked cabinet or a password-protected folder on your computer. The file should include personal information about the perpetrator, such as their name, contact information, and website address. If available, also include their purported regulatory registration numbers.

Next, create a timeline of events. This timeline may span several years, so try to recall and record all interactions and transactions. Include any relevant documentation, such as emails, contracts, account statements, and receipts. Save electronic communications, such as emails and social media interactions, by printing them out or saving them in a separate folder. Be sure to capture full header information for emails, which can be done by following the instructions provided by your email provider or through a simple web search.

If you have had any conversations or interactions with the fraudster over the phone, write down the details of these conversations, including the approximate dates, times, and phone numbers used. Similarly, collect any website addresses and take screenshots of relevant web pages.

Financial records are also important. Gather account information, statements, trade confirmations, disclosures, and sales materials. If you used a credit card, include the receipts or statements. Also, include records of other forms of payment, such as exchanges of digital currencies (e.g. bitcoin), cancelled checks, receipts for wire transfers, money orders, or prepaid cards.

Another important piece of information to include in your file is your most recent credit report from all three credit reporting companies. This will help you monitor your credit and protect your financial health.

Finally, add any reports you have made to law enforcement and take notes on any relevant documentation or conversations about the fraud. Having all this information in one place will be extremely helpful as you navigate the recovery process.

Contact an attorney for legal advice and guidance

If you have been the victim of security fraud investment, it is important to contact an attorney for legal advice and guidance. An experienced attorney can help you navigate the complex process of recovering your losses and guide you through your legal options. Here are some steps to consider when seeking legal assistance:

• Find a specialised attorney: Look for an attorney or law firm that specialises in investment fraud cases. They will have the necessary expertise and resources to handle your case effectively. For example, the Law Offices of Robert Wayne Pearce, P.A., is a law firm that specialises in securities fraud and has a proven track record of recovering losses for their clients.
• Schedule a consultation: Many investment fraud attorneys offer free initial consultations. Take advantage of this to discuss your case, understand your legal options, and determine if the attorney is a good fit for you. Be sure to ask about their experience, strategy, and expected outcomes.
• Provide relevant information: During your consultation and the legal process, be prepared to provide your attorney with detailed information about the fraud. This includes any documentation, communications, timelines, and other pertinent details that can support your case. The more information you can provide, the better your attorney will be able to assess and build your case.
• Understand the process and fees: Ask your attorney to explain the legal process, their strategy for your case, and the potential outcomes. Be sure to discuss their fees and billing structure upfront to avoid surprises. Ask about their payment policies, whether they work on a contingency fee basis, and get all financial agreements in writing.
• Act quickly: Time is of the essence when dealing with investment fraud. The quicker you reach out for legal assistance, the faster you can begin the recovery process. Prompt action also increases the chances of catching the perpetrators and preventing further damage.
• Protect yourself: While your attorney will guide you through the legal process, it is important to take steps to protect yourself. This includes safeguarding your personal and financial information, changing passwords, and monitoring your accounts for any suspicious activity.

Remember, the aftermath of investment fraud can be emotionally challenging. An experienced attorney will not only help you navigate the legal process but also provide support and guidance throughout your recovery journey.

Notify financial institutions to freeze associated accounts

If you've been defrauded by a security investment scam, it's crucial to act quickly to prevent further damage and protect your financial health. One of the immediate steps is to notify your financial institutions, including your investment firm, bank, and any other relevant institutions, to freeze any associated accounts. This will help ensure that no further transactions can be made and that your remaining assets are secured. Here are some detailed instructions on how to go about this process:

Contact Your Investment Firm or Brokerage:

• Get in touch with your investment firm, broker-dealer, or investment advisor as soon as possible. Report the fraud and ask them to freeze your investment accounts associated with the scam.
• Follow their instructions on securing your accounts and protecting your assets. They may have specific procedures in place for such situations.
• It is important to document all conversations and communications with your investment firm or broker in writing. Keep a record of these documents for future reference.

Notify Your Bank and Other Financial Institutions:

• Contact your bank and inform them of the security fraud. Request that they place a freeze on your accounts to prevent any unauthorised transactions.
• If you have accounts with other financial institutions, such as credit card companies or insurance companies, notify them as well. Any accounts that may be impacted by the fraud should be frozen immediately.
• Again, document all conversations and keep a record of your communications with these institutions.

Understand the Reasons for Freezing Accounts:

• Financial institutions have the authority to freeze accounts if they suspect illegal activity, such as money laundering, terrorist financing, or writing bad checks.
• In some cases, creditors can seek judgment against you, which can lead to a bank freezing your account to recover unpaid debts.
• Additionally, the government can request an account freeze for unpaid taxes, student loans, or other financial obligations.

Take Advantage of Government and Regulatory Body Support:

• The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) can provide support and guidance in these situations. They may also have enforcement actions in place that include financial restitution for investors.
• The Fair Fund provisions of the Sarbanes-Oxley Act of 2002 authorise the SEC to distribute financial penalties to injured investors through Fair Funds and Disgorgement Plans.
• The Securities Investor Protection Corporation (SIPC) is another organisation that provides limited protections to investors. If a firm that clears securities trades becomes insolvent or financially incapable of returning your property, SIPC ensures the return of your cash and securities within specified legal limits.

Remember, each financial institution may have its own procedures for freezing accounts, and you should familiarise yourself with their policies. By taking these steps, you can help secure your remaining assets and prevent further financial loss due to security fraud investment scams.

Reach out to other victims and join support groups for insights and resources

Connecting with other victims of security fraud can be a great source of support and insight. Support groups can provide emotional support and help you understand the trauma and emotional impact of financial loss.

There are various support groups available for victims of fraud, including the AARP Fraud Watch Network and Volunteer of America (VOA), which offers a program that provides emotional support and peer discussion groups. The National Identity Theft Victim Assistance Network is another resource, offering training and assistance to victims of identity theft and cyber-crime.

Online communities and forums can also be a great way to connect with others who have gone through similar experiences. These platforms can provide a safe and anonymous space to share your story and gain insights from others. You can also find support and resources through social media platforms, such as Facebook groups or Reddit communities dedicated to discussing investment fraud and recovery.

In addition to support groups, you can also reach out to other victims directly. If you know anyone else who has been affected by the same security fraud investment scheme, consider contacting them to share your experiences and exchange information. They may have insights or resources that could be helpful in your recovery process.

By connecting with other victims and joining support groups, you can gain access to valuable resources and information. These groups can provide guidance on legal options, share strategies for protecting yourself from future fraud, and offer emotional support to help you cope with the trauma of financial loss. Remember that you are not alone in this journey, and reaching out to others can be a powerful step towards recovery.

Frequently asked questions