Investment fraud describes the deception of investors about the nature, security or existence of a capital investment in order to induce payments. It is not a separate offence in its own right: legally it is fraud under § 263 StGB, which requires deception, a resulting disposition by the victim, and a financial loss.
In practice the term covers a wide range of schemes — non-existent funds, fake trading platforms, invented returns, Ponzi structures and unlicensed providers among them. What they share is that the money is not invested as represented.
Why it matters to you
The classification matters because it determines the routes available: criminal proceedings that can secure assets, and civil claims against perpetrators, the people behind them and sometimes parties along the payment route. Our investment fraud page sets out those options, and the detailed guide explains the sequence in detail.
Chargeback
Reversal of a card payment through the issuing bank — when it comes into consideration after fraud and which limits apply.
Pig butchering
A scam combining weeks of trust-building with fake crypto investments. Definition, typical sequence and help for victims.
Ponzi scheme
An arrangement funding payouts from the deposits of new investors, which collapses inevitably — features and legal position.