Investment fraud: losses likely in the hundreds of millions of euros per year

Investment fraud almost always starts online

Investment fraud is developing at lightning speed: becoming more professional, digital and international. This fraud almost always starts online: victims are lured via social media, fake advertisements and malicious websites, often run from abroad. The sophisticated, professional and automated way of working makes everyone a potential target. The financial damage per victim is often considerable, and the psychological impact – partly due to shame and possible repeated victimization – is great. This underscores the need to prioritize investment fraud with greater urgency. 

Laura van Geest, Chair of the AFM Executive Board: 'We are very concerned about the explosive growth of investment fraud via an online approach. Anyone can be affected by this, regardless of age or experience. Only intensive cooperation between public and private parties can lead to a better fight against this growing phenomenon with major financial and social impact.'

Victims’ willingness to report is low

The AFM notes that the willingness to report among victims is low. Only a small part of  fraud is actually reported, as in other countries, which means that the real scale is structurally underestimated. In collaboration with stakeholders such as the Police, FIOD, Fraud Helpdesk, FIU-the Netherlands and the Dutch Banking Association, the AFM has made a thorough estimate of the total losses. This is based on national registrations and international comparisons.

Intensive cooperation needed between public and private parties

The AFM emphasises that the fight against investment fraud is a joint responsibility between both public and private parties. The AFM therefore argues for a higher prioritization of investment fraud within policy, supervision and law enforcement. Supervisors and investigative services must anticipate these developments, for example through a central reporting desk and coordinated enforcement. Social media platforms and other gatekeepers also bear responsibility for preventing their services from being abused for malicious purposes.

More information

The hidden scale of investment fraud in the Netherlands (pdf, 800 kB)