Financial fraudFake financial institution
This is more sophisticated than simply creating a fictional investment company.
The fraudster impersonates an actual or apparently legitimate Luxembourg financial institution. The criminal may copy the institution's name, logo, Luxembourg address, website, employee names, regulatory information, company registration details.
The victim may search the company independently and discover that the real company actually exists. This makes the fraud particularly convincing.
The CSSF regularly publishes warnings concerning the misuse of the identities of legitimate Luxembourg financial-sector entities at: https://www.cssf.lu/en/warnings/
A basic check such as “Does this company exist?” may produce the wrong conclusion.
The correct question is: “Is this particular person, website, email address and financial offer genuinely operated by that company?”
Concrete example
An investor receives an email from someone claiming to work for a Luxembourg financial institution. The email contains the institution's logo and a link to a professional-looking website. The company name and Luxembourg address appear legitimate. The fraudster offers access to an investment product and sends documents containing regulatory terminology and apparently official information. The investor transfers funds to the account provided. The genuine Luxembourg company later confirms that it had no relationship with the person or transaction.
Red flags,
stop if
- The website is different from the financial institution's official website.
- The email address doesn't match the institution's official domain.
- The person contacting you cannot be independently verified as an employee or representative.
- The legal name, Luxembourg address or telephone number doesn't match official information.
- The website uses the CSSF logo or claims to be “CSSF regulated” but you haven't independently verified it.
- You receive investment brochures, certificates or financial guarantees that cannot be verified directly with the genuine institution.
- You are asked to transfer money to an account that is not in the exact name of the institution.
- You are pressured to invest quickly or promised unusually high/guaranteed returns.