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Lesson Learned From Being Scammed

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Robert Hull

Contributor
Nov 21, 2018
20
42
19
Several years ago, I got SCAMMED out of £1,000.

I hate that I lost the money, but I learned a valuable lesson.

Here's what happened.

My brother told me about this guy his friend knows who watches stock prices on multiple computer screens, he does nothing but monitor stock prices all day every day, so he's an expert who knows what he's doing.

He buys when stock prices are low, puts a lot of money in, and sells when they go up just a little bit.

I knew nothing about stocks then (I still don't, and don't care to learn before I've made my millions through business), but hey, this guy is an expert, and my brother's friend who knows the guy is a financial advisor who has invested tens of thousands of pounds on this stock trading wizard. If a financial advisor who advises rich people on what to do with their money can trust this guy with his money, then surely I could trust him too!

The returns were amazing! I forget what they were, but I remember it being more money in a month than my bank's ISA savings account's then-great interest rate would give me in a year.

I had quite a bit of money I could have invested, maybe around the £10,000 mark, but I decided to be cautious and invest £1,000.

My brother invested £3,000, an uncle of ours invested multiple thousands.

I remember feeling like I was losing out. My brother and my uncle were making so much more money than I was, and I could 10x my returns if I put in everything I had, but I decided to first wait and see what happens with my initial investment.

I kept track of how much I was making month after month and it felt good, this was surely a path to riches that I was lucky to discover.

My uncle needed his money for something, so he took his money out of the program. I felt sorry for him.

Then the news came.

My brother told me the guy had apparently had his assets seized by the police (or something along those lines) because they suspected his business had links with terrorists.

The money was gone.

I lost £1k, my brother lost £3k, my uncle got lucky by pulling out his money at the right time, my brother's friend lost £60k!!!

I don't know if the story about the police seizing the guy's money was true or not, maybe he was being honest, maybe it was a scam. But scam or not, that bastard lost my money. I would punch him in the face, but I didn't know anything about him, not even his name.

Lessons learned:

- Don't invest your money in something you know nothing about.
- Don't throw your money at an "expert" who knows what he's doing, and leave him to it to grow your money.
- Don't trust your money with someone someone else knows, be sure YOU directly know the person who's dealing with your money.
- There's no such thing as easy money.
 

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FierceRacoon

Bronze Contributor
Speedway Pass
Jun 1, 2019
119
177
136
Ever heard about Ponzi schemes? This is exactly what it is. People invest for "amazing" returns; new investors' money is used to pay the older investors. It works so long as more and more people are pulled into it. In the end the growth stopped and the guy ran away. You had to report him to police, by the way. In the USA and many other countries it is definitely illegal to take people's money and pay them more unless you have a registered company complying with certain laws, in which case you should've received official paperwork explaining why you were not paid.

You may enjoy the movie PyraMMMid about Sergey Mavrodi, the creator of MMM, the most famous Russian Ponzi scheme and probably the largest one ever:
View: https://www.youtube.com/watch?v=geTNZauH8jk
The guy went on to keep creating new Ponzi schemes until the end of his life.

UPD: Amazon doesn't seem to have it any more and I only found a full version without subtitles.
 
Last edited:

Ing

Bronze Contributor
Read Millionaire Fastlane
Speedway Pass
Jun 8, 2019
265
187
82
54
Bavaria
About 15 years ago friend of a friend told, that an american sponge making company is rising back from ruin.
Share prize was oszillating between 0,001 and 0,05. Some day I invested 1000 at 0,001. Guess, how often again it went over that?!
edit : Sponge Tech Delivery!
 

Imgal

Gold Contributor
FASTLANE INSIDER
I've Read UNSCRIPTED
Speedway Pass
Aug 9, 2015
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I think if you polled this forum you'd find it has happened to a lot of people in different ways. I invested in a friend's business in blind faith they'd pull it off. Wiped out my savings to that point and took even longer to get me to trust my own judgement in anything. I do though think I'm stronger for it.

Just make sure to take it as a lesson, not a failure and you'll be just fine.
 

Roli

Gold Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jun 3, 2015
1,506
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570
Several years ago, I got SCAMMED out of £1,000.

I hate that I lost the money, but I learned a valuable lesson.

Here's what happened.

My brother told me about this guy his friend knows who watches stock prices on multiple computer screens, he does nothing but monitor stock prices all day every day, so he's an expert who knows what he's doing.

He buys when stock prices are low, puts a lot of money in, and sells when they go up just a little bit.

I knew nothing about stocks then (I still don't, and don't care to learn before I've made my millions through business), but hey, this guy is an expert, and my brother's friend who knows the guy is a financial advisor who has invested tens of thousands of pounds on this stock trading wizard. If a financial advisor who advises rich people on what to do with their money can trust this guy with his money, then surely I could trust him too!

The returns were amazing! I forget what they were, but I remember it being more money in a month than my bank's ISA savings account's then-great interest rate would give me in a year.

I had quite a bit of money I could have invested, maybe around the £10,000 mark, but I decided to be cautious and invest £1,000.

My brother invested £3,000, an uncle of ours invested multiple thousands.

I remember feeling like I was losing out. My brother and my uncle were making so much more money than I was, and I could 10x my returns if I put in everything I had, but I decided to first wait and see what happens with my initial investment.

I kept track of how much I was making month after month and it felt good, this was surely a path to riches that I was lucky to discover.

My uncle needed his money for something, so he took his money out of the program. I felt sorry for him.

Then the news came.

My brother told me the guy had apparently had his assets seized by the police (or something along those lines) because they suspected his business had links with terrorists.

The money was gone.

I lost £1k, my brother lost £3k, my uncle got lucky by pulling out his money at the right time, my brother's friend lost £60k!!!

I don't know if the story about the police seizing the guy's money was true or not, maybe he was being honest, maybe it was a scam. But scam or not, that bastard lost my money. I would punch him in the face, but I didn't know anything about him, not even his name.

Lessons learned:

- Don't invest your money in something you know nothing about.
- Don't throw your money at an "expert" who knows what he's doing, and leave him to it to grow your money.
- Don't trust your money with someone someone else knows, be sure YOU directly know the person who's dealing with your money.
- There's no such thing as easy money.
Hmm, strange one this, because it doesn't actually sound like a scam. If your uncle got all his money out, then he got what was advertised.

The only reason you lost the money, is because you did what most investors do. When the investment goes up, you sit there thinking you've made money, when in fact you need to actually sell some or all of the investment to realise the profits.

If you had taken out your initial investment, with some of your profits, you would have lost nothing, and made some money just like your uncle did. However your greed made you carry on risking the entire 1000, this is the story of a million and one investments (including ones I've made).

So whilst the guy may well have been dodgy, he wasn't scamming you, or there would have been no chance to make any money whatsoever.
 

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