Atlanta Woman Loses $120K To Fake Financial Adviser

Atlanta Woman Loses $120K To Fake Financial Adviser

Danielle Antosz  Tue, September 17, 2024   Moneywise

Here Are The Warning Signs Of Investment Fraud

An Atlanta woman, who chose to protect her identity with the pseudonym Yvonne, was defrauded of her life savings by a fake financial adviser.

Prior to the scam, she said she'd prided herself on her "common sense" and research skills. "My family would be the first to tell people, she’s the ‘go-to,’” she told WSB-TV Atlanta. But now, she’s out more than $120,000.

In an effort to invest for her family’s future, Yvonne decided to contact a finance professional she’d spotted on YouTube. The person appeared to receive glowing reviews on social media.

Before sending any money, Yvonne looked the person up on BrokerCheck, an online tool from the Financial Industry Regulatory Authority (FINRA) that shows investors the employment history, certifications, and any violations for brokers and financial advisers.

It appeared that the person was registered, licensed, and allegedly worked for a company Yvonne recognized — Fidelity.

“I thought I had done my research,” she told the news outlet. "[This money] was a lifetime of work to me. My future."

After calling FINRA to double-check if the investor was legitimate, Yvonne sent the finance professional $5,000 via Automated Clearing House (ACH).

Over the next few weeks, she received messages from the supposed adviser showing her that her crypto investment was growing. But when Yvonne went to cash out, everything went south.

A Case Of Stolen Identity

When Yvonne was ready to withdraw her money after seeing significant growth, the scammer insisted she pay taxes on her investment gains or risk legal action.

They then directed her to create an account on Crypto.com to submit the payment, to which Yvonne complied.

This was followed up with another message asking for additional funds for taxes, then another message insisting Yvonne pay thousands of dollars for an international business permit certificate, all in crypto.

By that point, Yvonne had sent multiple payments totaling more than $120,000 — her entire life savings. Then, the scammer disappeared.

Later, Yvonne learned that the Fidelity financial adviser was legitimate — but someone had stolen their identity and was using it to defraud unsuspecting clients.

TO READ MORE: https://www.yahoo.com/finance/news/atlanta-woman-loses-120k-fake-111700914.html