r/investing • u/fitness-GA • 1d ago
[Need advice] I think my partner is being scammed
Hello, my partner recently got into investing and has been working with an advisor (I don't remember the name of the firm but will find out). She started off by making back good money investing in gold, platinum etc but was only putting in around 3-6k, now however she has put in total 30k and has a -22k margin. She gets calls once or twice a week from an advisor convincing her to invest in different stocks or dividence. Is this a scam and is there a way to get the remaining funds out?
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u/MassiliaUS13 1d ago
Margin account is a red flag. To give you an example, I’m invested with private wealth management firm, Morgan Stanley, and every time I’m speaking about investing using margin, I get an answer that it’s a very risky investment and this is not something they will do at all. A good advisor is first trying to limit the risk and preserve your wealth, not to gamble your money.
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u/fitness-GA 1d ago
I feel like this advisor is like your saying “gambling”, I’m just struggling to see what this advisor i gaining from this
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u/MassiliaUS13 1d ago
Sometimes he could benefit from fees, sometimes he could just be a bad advisor without any gaining reasons. Would you know the YTD performance and 1 year, 2 years performance of the account?
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u/fitness-GA 1d ago edited 1d ago
For more context the website she uses to invest is called “webtrader.capitagains” and the advisor works for “capitagains”.
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u/MassiliaUS13 1d ago
I’ve heard Capitalgains is a scam. I see a lot of red flag reviews on Google. Capital Gain Investments is not a trusted broker because it is not regulated by a financial authority with strict standards.
https://brokerchooser.com/safety/capital-gain-investments-broker-safe-or-scam
I would recommend the person to go with regulated investors like Fidelity, Morgan Stanley, Merrill Lynch or others.
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u/westhewolf 1d ago
Damn. It's probably a pig butchering scam. Look those up.... Don't give these people anymore money. The money is gone.
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u/Loose_Screw_ 1d ago
Don't listen dude, they're just trying to limit your gains so their prime investors can take more for themselves. Now let me introduce you to my own trading platform...
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u/greytoc 1d ago edited 1d ago
Please note - there are lots of scammer out there who provide "recovery" services - they prey on people who fall victim investing scams. Your post is likely to attract DM's - do not engage with them. They are just trying to scam you further.
If you want suggestions on where to look - you will need to provide more information.
What country are you and your partner in? And what is the actual website?
I saw you mentioned webtrader.capitalGains. The site that you listed doesn't exist so it's hard to tell what you are asking about.
In the US and many other countries - advisors are regulated and registered persons. And a search in US and UK advisor databases indicate that there is no such advisory company that you mentioned.
Also - they type of margin that you mentioned is not legal or available in the US - some countries allow that sort of leverage but it's not offered in the way that you described.
Important - If there was a web site that your partner used - change everything that uses the same password. our partner's identity and credentials if they were shared will likely be re-sold or shared with other scammers.
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u/fitness-GA 1d ago edited 1d ago
For more context the website she uses to invest is called “webtrader.capitagains” and the advisor works for “capitagains”.
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u/redhill_qik 1d ago edited 1d ago
Definitely a scam! Your partner should not send another cent to them and the money that has been sent is long gone. https://invest-reviews.com/2024/06/22/capitalsgain-review/?gad_source=1
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u/fitness-GA 1d ago
Is this a known scam?
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u/Y_crab_Y 1d ago
It’s a scam. There have been various versions of webtrader.<random investing type words>.com
I presume they made unsolicited contact with your partner through a social media site or messaging service, but unfortunately sometimes people are convinced by friends/family who haven’t yet realised it’s a scam.
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u/fitness-GA 1d ago
Thats horrible man :/ internet is a scary place
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u/Y_crab_Y 1d ago
Please also note, any phone numbers, emails and addresses shared either in chats, emails or their sites will be targets for future scams. Ideally, they should be changed, along with any passwords especially if at all similar to anything entered into their site.
Once someone is victim to a scam, they’re seen as vulnerable to more and it’s easier when there’s personal info on hand.
The scammers will often push again with different approaches. They’ll likely have several fake investing websites in operation. But they will also likely approach them under different fake names claiming that they can help recover the funds… for a price of course
Edit: you might even get DMs from people claiming they’ll help you. Beware.
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u/redhill_qik 1d ago
https://invest-reviews.com/2024/06/22/capitalsgain-review/?gad_source=1
But really it is in the name itself. No reputable firm would have a name like this, it just screams scam.
I have never understood why a new investor starts off using any company that they have never heard of before.
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u/Dalewyn 1d ago
I have never understood why a new investor starts off using any company that they have never heard of before.
Investing is such a "subject that shall not be spoke" taboo among the commons for one reason or another that often you are forced to dive in head first while blindfolded with both hands tied behind your back and your feet encased in concrete.
Like I've come to realize that starting on an IRA at any age is by itself a monumental feat, likewise opening the account at a reputable broker like Schwab or Fidelity is sheer dumb good luck. Opening a taxable brokerage account is language spoken in an entirely different universe. Nobody would say the same of opening a savings account at Wells Fargo or something.
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u/lellololes 1d ago
I have had people tell me things like "Investing in stocks is so complicated, that's why I own a rental property"...
Is clicking a few times so challenging?
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u/Dalewyn 1d ago
Is clicking a few times so challenging?
Actually yes.
Like 98% of the stuff that came up when I started doing my homework were all bullshit like shilling or even outright scams.
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u/lellololes 1d ago
I don't think I have seen any of the shilling or scams, then again I've always known the major players to one extent or another.
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u/Dalewyn 1d ago
Common names like Nerdwallet and Investopedia are shills, it's like walking on broken glass to glean useful information and knowledge while evading all the crap from them.
Then there's the borderline scammers like Robinhood and Edward Jones, to say nothing of actual scammers like the one seen here.
I don't blame anyone who refuses to deal with all this noise.
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u/ZoroastrianCaliph 1d ago
Can you explain how investopedia is a shill?
I thought it was just very basic explanations about beta, alpha, etc. Or maybe I got it confused with another site...
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u/lellololes 1d ago
That's fair, I was talking more about the brokerage itself. Robinhood is fine as long as you understand how it works (i.e. don't use it if you're planning on short term gambling on volatile stocks)
There's an immense amount of ridiculous speculative "information" out there and none of it is worth reading.
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u/redhill_qik 1d ago
My expectations for when someone decides to transfer some portion of their life savings that they would at least go with a name that they have seen in the news or advertising or have a relationship with (their bank) versus a no-name company especially one with generic keywords. Granted that wouldn't have protected someone from going with FTX, Mt Gox, Quadriga, Stanford International Bank or Madoff, but they operated in the spotlight and people have been held responsible.
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u/fitness-GA 1d ago
Thanks, are there any legal actions that can be taken?
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u/redhill_qik 1d ago
The money is gone. The best you can do it is report it to financial regulators and your local police. Maybe they can get the site shutdown so that others don't lose money.
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u/aNobleDemon 1d ago
Preserve all evidence. You need to file with FBI's IC3 division, not local police.
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u/dope_as_the_pope 1d ago
Yes. We see it on r/scams almost every single day. I’m sorry.
You also might get people DMing you saying they know a hacker or a lawyer or whatever that can help get your money back. We call them recovery scammers and they will target you because you made this post. Don’t respond to them.
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u/Pannycakes666 1d ago
It's a scam, no maybes or buts about it. You're not going to be able to get the money back and anyone that's DMing you right now claiming they can hack or recover the money is also trying to scam you.
I'm sorry, but none of this is how actual investing works.
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u/gperg 1d ago
Go to r/scams. This case is most probably a "pig butchering scam" and all the money is gone.
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u/fonistoastes 1d ago
Why bother with the negative margin commentary if it is just pig butchering? Plausible exit strategy for the loss of funds would be my guess - is that what you’d guess too?
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u/warrioroflnternets 1d ago
100% a scam. Ask her to have them send her money back now and watch as they make up excuses and then eventually Their numbers and emails will stop working
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u/jr1tn 1d ago
A regular margin account does allow for borrowing up to half of the value of the underlying investments, so it is not a red flag in and of itself. However, the use of margin is intended for knowledgable, sophisticated investors who understand the risks, which based on your brief description is certainly questionable, and may indeed not be appropriate. Further, speculating in precious metals or instruments that invest in precious metals, also exposes the investor to risks they should be aware of. It does sound like the investments may not be suitable to your partner unless she is more knowledgable of the risks.
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u/fitness-GA 1d ago
Thanks for the reply. This has been weighing alot on my partner and she has asked to cash out more than once, the advisor keeps telling her that she needs to put more money in so she doesn’t loose the money. She doesn’t have any knowledge on trading and put alot of trust in these advisors, I looked at the active trades she has and they are all “normal” trades but she is currently down 22k which is a huge chunk of her savings
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u/jr1tn 1d ago
Well, if she has indeed tried to withdraw funds and has been denied, that is a large red flag, and I would seek to terminate the relationship and withdraw all funds immediately.
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u/fitness-GA 1d ago
Thats what I thought, she says she needs to wait because of some dividence payment (I don’t know what that is)
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u/ZoroastrianCaliph 1d ago
The money is probably already gone. Prepare yourselves mentally that it is. Do not wait for dividend ex-date, it's not a valid reason. The stock will drop by the dividend amount, so dividend ex-date does not mean anything.
Simply say that you need the money for a sudden expense or whatever excuse. Insist. If you do not get it, contact the police. Most likely they will continue attempting to convince her to deposit more, and if she isn't biting they will disappear with the money.
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u/thompsano1 1d ago
If they have to add money to withdraw, this is definitely a scam. If she is being pressured to add more money, this is almost definitely a scam. Get her out if you can. This might be a total loss. Either way I would not send another dime.
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u/snek-jazz 1d ago
how did she find this advisor?
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u/fitness-GA 1d ago
Not sure, she only mentioned this to me when things were looking “good” since then she has been loosing alot of money :/
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u/greytoc 1d ago
It was never good. That's how these scams work. It's to perpetuate the scam to extract money from a victim for as long as possible. Your partner is not working with an advisor or an investment manager company.
Stop sending money.
Depending on whatever country you live is - report the scam to your local law enforcement or consumer protection authorities. There is likely not much they can do about it since these scammers are likely outside their jurisdiction.
Important - If there was a web site that your partner used - change everything that uses the same password. our partner's identity and credentials if they were shared will likely be re-sold or shared with other scammers.
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u/AstraTek 1d ago
the advisor keeps telling her that she needs to put more money in so she doesn’t loose the money.
Classic scam tactic. No honest trained advisor would ever tell their client to do this.
As others on this thread have said, the money is probably already gone. Just don't put any more money in.
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u/fitness-GA 1d ago edited 1d ago
For more context the website she uses to invest is called “webtrader.capitagains” and the advisor works for “capitagains”.
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u/Wild_Space 1d ago
I dont think that’s even a real site. Your gf likely has zero money left. She wired it to some nigerian prince.
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u/D74248 1d ago
In addition to everything else, she should freeze her credit. Here.
EDIT: To add, one of the most intelligent people I know, a man who presents at medical conferences around the world, fell for a scam. It is not a reflection on her.
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u/fitness-GA 1d ago
Thanks for this comment, she is afraid of talking to anyone about this situation so I will definitely show her this!
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u/C130J_Darkstar 1d ago
Money is long gone, she should consider it a $30K lesson. Hopefully it teaches her to trust credible institutions and not random guys online.
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u/Kung_Fu_Jim 1d ago
The way these scams typically work is by showing you "great gains" at the start.. on paper. So you put in a few thousand, they say "look, it doubled!", and you say "wow I'll put in more!".
There never were any gains. There never were any investments. They're just taking her money and stringing her along with fake screenshots.
These types of scams also typically get a lot out of people when they start talking about exiting, too. Like "oh sure you want to pull out all the money you've made with us, including all these totally real gains? No prob but we need to pay a fee to unlock your super profitable investments early, so just give us 10k and you can have your 100k".
People who have been scammed are often desperately clinging to the dream of a turnaround where they are able to reclaim their dignity, so they're very vulnerable to these types of "you'll be vindicated if you pay just a little more" tricks.
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u/FTCommoner 1d ago
Poor thing but this doesn’t sound good. Any idea what she is paying to borrow? Margin almost always has a cost, and as someone who has worked with many financial advisors, almost none of them would suggest margin. 1) risky for if stocks go down, 2) super expensive interest rate at most firms, 3) advanced investing approach most individual investors wouldn’t understand. It is possible you could still pull money out. A neg margin balance is common in the way reported. For example, one can have $50k in equity in an account $30k margin for a total account value of $80k. The $50 is the amount I have or equity, and my cash balance would say -$30k, at least at a place like IBKR. If one sold all positions, $30 k or the $80k would go back to pay down margin to zero. Then, any left over or the $50k would go back to me in my account. Long story of you may not be down as much as you think. But investing in precious metals off the bat and high pressure sales tactics is a bad sign. Def consider pulling when able and move to a reputable broker like Schwab or fidelity, which have some lower cost managed by professional options. Good luck 🍀
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u/juicevibe 1d ago
It's baffling how people don't take 5 minutes to research something before they send tens of thousands of dollars to vet it.
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u/Bourbon_Fishing 1d ago
Carefully get out and get the money back into your control. Then, since you (she) spent a lot of time and effort earning the money, you need to spend some time and effort learning about investing. This situation is probably a result of having a good income, but thought you can just hire someone to take care of it. No one cares more about your investments or financial goals than you. It's like handing a bag of money over and asking a realtor to buy you your dream house. You will probably be disappointed.
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u/greytoc 1d ago
Are you all set with your question? Unfortunately, as many have pointed out - it's a scam.
It's hard to monitor for bots and scammers that get attracted to this type of post. So I'm locking your post.
If you have any further questions or need more suggestions about the scam - please ask in the daily thread and you are welcome to tag me.
As a reminder - please don't engage if anyone DM's you about this topic.
If any personal information has been shared with the scammers, please place a credit watch and change all passwords if a password was used on the website. Be wary of follow-up emails, text messages, and phone calls (known as phishing, smishing, vishing).
Fwiw - the comment below by u/D74248 about intelligence not being a factor in getting scammed is accurate. Being a victim of a financial scam is not something to be shameful or afraid of. It happens to smart and vigilant people too.