An elaborate investment scam almost costs one man $300,000

When David* was looking for an investment opportunity, he turned to the internet.  

After researching bonds online and via Facebook, the 56-year-old came across a company that seemed promising. Despite his efforts to verify the legitimacy of the company, David unknowingly became the victim of an elaborate investment scam, transferring a total $300,0000.

“It all looked legitimate. I thought I’d done my due diligence half a dozen times, but obviously not good enough,” David shared. 

“It turns out there was an authentic company and then there was the other company that was presenting to be the same. I had researched the authentic company but when I’ve gone to ring the number to speak with someone, I rang the other one. And that’s how they drew me in.”

The scammer, who called himself Henry Walker, maintained consistent contact with David, never raising any red flags. 

“He was never panicked or rushing for me to make any transactions, which put my mind at ease,” David shared.

The first realisation that it may be a scam came after Westpac’s Fraud and Scam Operations team phoned David to ask questions about the first payment he had made, after Westpac’s SaferPay technology alerted it could be a potential scam. 

“At that stage I was still very confident that it wasn’t a scam,” David adds.

“After speaking to the Westpac team, I called Henry and said there could be a problem with the transfer, because Westpac was looking into my payments and going to freeze my funds.”

"He said ‘they’re going to tell you that because they don’t want your money leaving their establishment,’ which I took on board and thought that could be right," David said. 

Scammers often try to explain concerns raised by banks to keep their victims engaged, claiming fraud departments are there to stop your business when in reality, they exist to protect you. After a second call from the Westpac team, David’s suspicions grew. 

"That’s when I realised, maybe this isn’t right. Maybe, I’m in for a world of hurt."

The final blow came when David received a third call from Westpac who confirmed it was a scam. 

"I thought the world was ending," David reflects.

Fortunately, Westpac was able to recover David’s funds before they had left the scammer’s account. David's experience highlights the sophisticated tactics scammers use to exploit trust and the emotional and financial toll these crimes can take.

“Moving forward, I certainly will go about doing things differently,” David shares. 

*Name changed for privacy.