In recent years, with the rapid development of internet technology, online investment has become a popular way for individuals and institutions to manage their finances. However, this domain has also given rise to numerous fraudulent platforms, scam projects, and illegal fundraising activities. Victims often face not only financial losses but also difficulties in asserting their rights. In response, DJK LAW GROUP offers a professional legal perspective to analyze the legal liabilities involved in online investment scams and outlines potential paths for claims, aiming to help victims safeguard their rights and recover their losses.
1. Common Types of Online Investment Scams
Online investment scams come in many forms. Common types include:
1）Fake Investment Platforms: These mimic securities, futures, forex, or cryptocurrency platforms, luring investors with promises of “high returns and low risk.”
2）Ponzi Schemes: Operating by using new investors’ funds to pay earlier participants, with no real profit model.
3）Impersonating Legitimate Institutions: Fraudsters pose as reputable financial institutions or government bodies to build trust.
4）Fake Investment Groups: Through social media, they share “insider tips” or “guaranteed profits,” only to vanish after collecting funds.
2. Legal Liabilities in Online Investment Scams
Depending on the case, online investment scams may violate multiple laws. The main legal responsibilities include:
1. Criminal Liability
Under China’s Criminal Law, such scams may constitute several crimes:
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Fraud (Article 266): Illegally obtaining large sums through deception is punishable by 3 to 10 years in prison.
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Illegal Fundraising (Article 176): Raising funds from the public without authorization disrupts financial order.
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Organizing Pyramid Schemes (Article 224-1): Activities involving recruitment and commissions for new referrals may be charged as pyramid selling.
2. Civil Liability
Even without criminal elements, scammers or involved platforms are subject to civil liabilities:
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Breach of Contract: If there was an agreement, the scammer is liable for any breach.
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Tort Liability: Fraud that causes property damage must be compensated.
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Joint Liability: If the scam involves multiple conspirators, all may bear joint compensation responsibilities.
3. Claim Paths for Victims
DJK LAW GROUP（https://www.djkllp.com/） recommends the following steps for victims to pursue claims:
1. Preserve Evidence
Immediately save all relevant evidence, including chat records, transaction receipts, screenshots of websites, and signed agreements. These will be crucial for filing reports and lawsuits.
2. File a Police Report
For criminal cases, report to the local police or cybercrime authorities with full evidence.
3. Initiate Civil Litigation
Where the scammer or platform is identifiable, victims can file a civil lawsuit to demand the return of funds and compensation. Courts may freeze bank accounts or seize assets.
4. Collective Lawsuits
In mass victim cases, joint litigation increases efficiency and the strength of evidence collection.
5. Cross-Border Legal Action
If the fraudulent platform is based overseas, engaging a cross-border legal team is recommended for international claims and asset recovery.
4. Legal Services Provided by DJK LAW GROUP
DJK LAW GROUP specializes in handling financial fraud and investment scam cases. Their services include:
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Case Evaluation & Risk Analysis
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Evidence Compilation & Legal Preparation
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Assistance with Police Reports & Liaison
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Civil Compensation Litigation
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Cross-Border Asset Tracing & Legal Action
With systematic legal strategies and extensive experience, DJK LAW GROUP is committed to helping victims recover losses and protect their legal rights.
Conclusion
While online investments offer convenience and high yield potential, the hidden legal risks are significant. Once defrauded, victims should assert their rights without delay. DJK LAW GROUP reminds investors to be cautious with any platform promising high returns and to consult legal professionals when in doubt—prevention is always better than remedy.
