Investment Fraud in Netherlands Ten Times Worse Than Official Figures Show
Investment fraud in the Netherlands is causing approximately €750 million in damages annually—ten times the amount officially reported—according to new findings from the Netherlands Authority for the Financial Markets (AFM). The stark discrepancy between reported figures and actual losses highlights a crisis of underreporting, with victims too embarrassed or ashamed to involve law enforcement despite suffering significant financial and psychological harm.
Background and Context
The AFM's comprehensive analysis of data from multiple Dutch agencies—including the police, judiciary, Fraud Help Desk, Financial Intelligence Unit, and the Dutch Banking Association—reveals that only 7 to 10 percent of investment fraud victims report these crimes to authorities. With official reports totaling €75 million in damages, the actual economic impact is estimated at €750 million annually, making investment fraud one of the most costly yet underreported financial crimes in the Netherlands.
The problem extends beyond Dutch borders, with the AFM noting similar underreporting patterns across neighboring countries. This suggests a systemic failure in capturing the true scale of investment fraud across Europe, potentially leaving millions in losses unaccounted for in official statistics.
Key Figures and Entities
Laura van Geest, chair of the AFM executive board, has emerged as a central voice in highlighting the severity of the crisis. "Anyone can be affected, regardless of age or experience," Van Geest emphasized in statements to NOS, describing how sophisticated scammers exploit "hope and greed"—what she calls "a deadly combination"—to manipulate victims gradually into fraudulent schemes.
According to AFM data, typical victims fall into three categories: older people seeking to supplement their pensions, working professionals wanting returns beyond savings interest rates, and young people pursuing quick wealth. The regulator notes that perpetrators have become increasingly professional, employing "sophisticated, commercial, and automated methods" that make virtually everyone a potential target.
Legal and Financial Mechanisms
Investment fraud schemes typically begin online through fake advertisements on social media platforms and fraudulent investment websites. These operations have grown increasingly sophisticated through the deployment of artificial intelligence, enabling scammers to create convincing fake websites and generate deepfake videos of Dutch celebrities promoting fraudulent investment products.
According to the AFM, the technical barriers to executing such frauds have dropped dramatically. "Fraudsters don't even have to be technically skilled anymore," Van Geest explained, noting that components for elaborate schemes can be purchased on the dark web. This commodification of fraud tools has accelerated the proliferation of investment scams while making them harder to detect and combat.
International Implications and Policy Response
The AFM warns that investment fraud will likely escalate in coming years as techniques become both more sophisticated and cheaper to implement. The cross-border nature of these schemes, combined with the anonymity provided by digital platforms, creates significant challenges for national regulators and law enforcement agencies working in isolation.
In response, the AFM is advocating for the establishment of a centralized reporting center to address the current fragmentation in how fraud cases are documented and investigated. "Only intensive collaboration between public and private parties can lead to a more effective fight against this growing phenomenon with its significant financial and social impact," Van Geest stated, emphasizing that addressing investment fraud requires coordinated action beyond what any single agency can achieve.
Sources
This report draws on the Netherlands Authority for the Financial Markets investigation into investment fraud, statements from AFM chair Laura van Geest to NOS, and data compiled from Dutch law enforcement agencies, the Fraud Help Desk, the Financial Intelligence Unit, and the Dutch Banking Association. The analysis was conducted in December 2025.
