Investment Scams: The Common Indicators and How to Stay Safe

Understanding Investment Scams

Investment scams begin with bad actors offering a low risk, high reward investment opportunity that promises quick money or “guaranteed returns”.  These scams impact every demographic and continue to evolve.  They are associated with real estate, cryptocurrencies, and stocks. Some examples include advanced fee schemes, pyramid schemes, ponzi schemes, and offshore investing scams.

Common indicators:

• High-pressure tactics used in an attempt to persuade you to invest now.
• Unsolicited communication via email for an investment opportunity.
• A “hot tip” or “insider” information.
• An opportunity that sounds too good to be true.

Tips to stay safe:

• Ask questions and don’t rush to a decision.
• Do thorough research on any new investment opportunities before investing.

If you believe you’re the victim of this scam, do the following:

• Cease communication with any bad actor(s).
• If financial information was provided, contact the associated companies to request new accounts be opened.
• Contact local law enforcement.