Online investment fraud is on the rise, with scams involving cryptocurrency, forex, and fake trading platforms becoming increasingly sophisticated. Many victims are lured by promises of “high returns with low risk,” only to lose significant amounts of money. So how should victims respond after falling for such scams? Based on extensive experience, DJK LLP shares five practical legal tips to help victims stop losses and protect their rights.
1. Stay Calm and Preserve All Evidence Immediately
The most important thing after discovering a scam is to collect and safeguard all relevant evidence:
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Keep complete chat logs from messaging apps like WhatsApp, Telegram, WeChat, and emails;
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Save all transaction records, including screenshots of bank transfers or e-wallet transactions;
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Document the fraudulent platform, such as the domain name, app name, and support contact details.
The more thorough the evidence, the higher the chance of holding scammers accountable or retrieving funds.
2. Stop All Transfers Immediately and Beware of Secondary Scams
Scammers may try to trick victims again by posing as “customer service” or offering “refund channels.”
This is often a second round of fraud.
Victims should:
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Freeze any linked bank or payment accounts;
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Cease all further transactions to avoid deeper financial losses.
3. Report to Police and Financial Regulators As Soon As Possible
File a report with the local police or cybercrime unit without delay. If the case meets criminal thresholds, authorities may investigate.
At the same time, victims should report to:
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Financial authorities such as the China Securities Regulatory Commission or Singapore’s MAS;
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Payment platforms like Alipay, WeChat Pay, or PayPal.
Acting through multiple channels can speed up investigations and potentially lead to account freezes.
4. Consider Filing a Civil Lawsuit to Recover Losses
If the scammer’s real identity, account details, or location can be traced, a civil lawsuit may be feasible.
Legal grounds may include:
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Fraudulent misrepresentation leading to financial loss;
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Unjust enrichment;
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Invalid contracts due to deception.
DJK LLP can assist with demand letters, preparing legal complaints, and applying for asset preservation through the courts.
5. Seek Legal Support for Cross-Border Investigation and Recovery
Many modern scams involve overseas platforms, crypto transactions, or foreign bank accounts. Victims often find it difficult to navigate such cases alone.
DJK LLP provides:
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Cross-border coordination with foreign law firms;
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Blockchain tracing in partnership with compliance tech firms;
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Negotiation and settlement assistance, including formal legal notices to scam platforms to demand fund returns.
Conclusion
Online investment scams may appear sophisticated, but they often leave legal and procedural gaps. With swift action, preserved evidence, and proper legal guidance, recovery is possible.
At DJK LLP（https://www.djkllp.com/）, our goal is to help victims minimize losses and restore financial justice. If you or someone you know has been affected by an online investment scam, contact DJK LLP today for a free initial legal consultation.
