One in five Lithuanians have received unauthorised investment offers. How can you check whether they are legitimate?
One in five Lithuanian residents have received unauthorised investment offers over the past year, according to a representative survey conducted by market research company Spinter Research on behalf of law firm COBALT. These offers involve invitations to invest in financial products or schemes promoted by entities that are neither supervised nor regulated by public authorities. So how can such offers be verified?
COBALT Partner and Attorney-at-Law Akvilė Bosaitė notes that 12% of respondents said they had received unauthorised investment offers, while a further 9% admitted they had received investment proposals but were unsure whether they were legitimate. According to her, this demonstrates that many people still find it difficult to distinguish between a legitimate investment opportunity and offers that fall outside investor protection mechanisms and are therefore considered higher-risk investments.
“In such situations, individuals may be encouraged to invest in pyramid schemes, unregulated cryptocurrency platforms or other so-called alternative financial products whose activities are not supervised by the Bank of Lithuania or other European Union institutions,” says A. Bosaitė.
The survey findings indicate that unauthorised investment offers reach both older age groups and economically active individuals aged 26 to 55 to a similar extent.
How to spot the red flags
At the very least, it is worth checking whether the information provided and the companies themselves actually exist. This means looking them up in the Register of Legal Entities, business information databases and official websites.
“The key criterion for distinguishing a legitimate investment offer from a potentially unauthorised one is whether the service provider holds the appropriate licence. In Lithuania, investment services may only be provided by financial brokerage firms, credit institutions, financial advisers or management companies that hold an authorisation issued by the Bank of Lithuania or the supervisory authority of another European Union Member State,” explains COBALT Partner and Attorney-at-Law A. Bosaitė.
Licensed service providers are listed in the Register of Financial Market Participants supervised by the Bank of Lithuania. This register contains not only the company’s name but also information on the services it is authorised to provide, the type of licence it holds, the relevant supervisory authority and any associated risks.
If a company does not appear on this list, it means that the Bank of Lithuania cannot ensure the transparency of its services, accountability or investor protection. It is also advisable to check whether the company making the investment offer appears on the Bank of Lithuania’s list of websites offering illegal financial services. This list includes platforms and companies that have previously been identified as engaging in unauthorised or potentially fraudulent activities.
“People should only invest in products they genuinely understand and should not blindly trust claims commonly found in unauthorised offers, such as ‘zero risk’, ‘guaranteed returns’ or ‘extremely fast profits’,” says A. Bosaitė.
Before making a decision, she advises assessing exactly where the money will be invested, how returns will be calculated and what fees or risks apply. It is also important to verify that the documentation provided is clear and professionally prepared and that any promised returns are supported by realistic financial indicators.
The COBALT Partner points out that a legitimate investment adviser or company will never pressure potential investors into making a rushed decision.
“On the contrary, they provide sufficient time to review the information, answer questions and, where appropriate, ask clients to complete a know-your-customer questionnaire and provide information on their investment experience and risk tolerance. Such procedures demonstrate that the company complies with legal requirements and operates transparently,” explains A. Bosaitė.
What should you do if you have suspicions?
Even after carrying out checks, doubts may remain or emerge regarding the legitimacy of an investment offer. In such cases, it is important to act immediately.
If you have already responded to a suspicious offer and initiated a payment, the first step is to contact your bank. This may help prevent or reverse transfers that have not yet been completed. It is also essential to notify law enforcement authorities, including the police, the Financial Crime Investigation Service and the Prosecutor’s Office, as well as the Bank of Lithuania. All available information should be provided, including email and message correspondence, contracts, payment records, website addresses and contact details.
“The more information you provide, the greater the likelihood of a successful investigation. The Bank of Lithuania has the power to block websites offering illegal investment services. It is also important to contact your bank immediately to suspend or block potentially unlawful payments if any have been initiated,” says A. Bosaitė.
Acting quickly may help you recover your money
According to the COBALT Partner, the chances of recovering lost funds largely depend on how quickly action is taken.
If the bank is contacted immediately and the funds have not yet been transferred to third parties, it may in some cases be possible to stop or recover them. However, once the money reaches foreign entities or unregulated platforms, the likelihood of recovery decreases significantly. In such situations, recovery generally depends on a law enforcement investigation, which can be lengthy and does not always result in success.
A. Bosaitė emphasises that, when investing, the most important consideration is not the promised return but whether the investor is protected by law.
“If an investment offer raises doubts, it is worth taking the time to carry out additional checks or consult specialists. This can help avoid situations where investors are left without meaningful legal remedies.”
Businesses can also become victims
According to the COBALT Partner, unauthorised investment offers target not only individuals but also businesses.
As companies often manage larger pools of liquid financial resources, they represent particularly attractive targets for fraudsters, and a single poor decision can result in substantially greater losses than those typically seen in scams targeting private individuals.
For this reason, businesses should establish clear internal procedures and verification mechanisms defining how external investment proposals are assessed and who within the organisation is authorised to make investment decisions.
“However, formal internal control procedures alone are often insufficient. To reduce investment fraud risks, companies should implement additional safeguards. These may include arrangements with banks that enable timely identification and blocking of unusual or high-value transactions, IT security measures such as restricted access to online banking, two-factor authentication and network monitoring. Insurance against fraud or financial losses may also prove valuable, as it can in some cases compensate for damages incurred,” says A. Bosaitė.
She adds that regular employee training is equally important. Such training helps staff recognise deceptive persuasion techniques, identify signs of fraudulent investment offers and understand how to respond when concerns arise.
Although there are cases in which companies successfully recover funds lost through investment fraud via judicial or pre-trial procedures, these remain the exception rather than the rule. According to A. Bosaitė, success typically depends on swift action and coordinated efforts:
“A prompt investigation and effective cooperation with the authorities can make it possible to trace, freeze and return funds to the client.”
Spinter Research conducted the representative survey on behalf of COBALT in September 2025. A total of 1,017 Lithuanian residents from across the country participated in the survey.
