News
Crypto scam: Man scammed into six-figure scam gets his money back
February 7, 2024
Image source: Getty Images
Image caption: Fake company advised victim to invest retirement savings
A County Down man who was cheated out of his entire pension and savings has had his bank return almost all of his money.
Trading Standards helped him secure the victory and said it was one of the most significant cases ever awarded by the Financial Ombudsman.
He invested a six-figure sum in a fraudulent company.
The man, who the BBC called Mark, wishes to remain anonymous.
His investment started with £200 and quickly grew as his investment seemed to be performing well.
Eventually, the fake company advised him to invest his retirement savings and it was only after this that it became clear that it was a scam and that he had lost everything.
“Everything was gone”
When Mark realized this, he begged those behind the scandal to give him back some of his money.
“I told them there was no more money to bury me,” he said.
“I had failed in my duty to look after everyone. I had two daughters and there was nothing to support them or help them if they needed it.
“If something happened to me, my wife would be comfortable and everything would be gone.”
Mark fought for almost two years to get his money back. He was rejected multiple times – by the Financial Ombudsman and his bank – but he kept fighting with the help of Trading Standards, who eventually got his bank a refund.
“They’ve completely changed the game,” he said.
Mark added that the support and advice he received was “invaluable”.
“I would say to anyone in a similar situation to contact the trade regulators, no matter how much money it costs.”
Mark was helped by the fact that he kept all the documents and detailed notes of every conversation. He even managed to trace the company to an address in Scotland, but this also turned out to be fake.
“I didn’t know the bank had a duty of care towards me.”
“The Depths of Despair”
Damien Doherty, chief inspector of trading standards in Northern Ireland, said he was “delighted” with the outcome, adding: “It has been a long time coming.”
Image caption: Damien Doherty of Trading Standards helped Mark take his case to the Financial Ombudsman
“We thought it was a good case to make,” Mr Doherty said.
“Every time the case came to us, we were dealing with someone who was in the depths of despair, who had lost hope, who really had nowhere to go and it was a huge amount of money on top of that.
“Unfortunately the scammers got away with it, but the bank has a duty of care to its customers and there is a code of conduct that all banks are aware of in terms of protecting customers from crime and fraud, and in particular scams.”
Mark described the moment he received the news that he would get a large chunk of the money back: “The email with the decision arrived on a Friday, but I didn’t get to look at it.
“It was the Sunday before I read it. It was the first night I had slept well in all that time.”
But he says there was no joy or celebration: “The only celebration I would have had is if these people had been caught and had to pay the money back out of their own pockets.
“They do this and they know they will never get caught.”
“Scammers don’t warn of risks”
Software engineer Jim Browning told BBC News NI there are certain signs to look out for in sophisticated scams like the one Mark fell victim to.
“A real investment company will inform you of the risks of losing money. Scammers never do that,” he explained.
“It’s a wake-up call. They’ll say anything to encourage investment.”
Mr Browning told Evening Extra it was important to remember that scammers are professionals at making their scams appear legitimate.
“They have a lot of experience in this area. You certainly won’t be the first person they’ve encountered with this scam,” he said.
“If you look at some of these websites, you would have a hard time understanding that this is something amateur.”