Can you spot an investment scam on social media?

Can you spot an investment scam if it comes from an actual friend’s page on social media? If someone you know is suddenly posting bank account screenshots, claiming they can teach you to make money quickly with little to no risk, it’s likely an investment scam. Keep scrolling to learn how to recognize the signs.

An old friend announces they’ve become an online investment guru. They fill your newsfeed with reels about their foolproof method of earning big money. Here’s one way the scam plays out: You comment on your “friend’s” post, and they direct message you, explaining the process but with few details. They might guarantee big returns and say it’s a limited time offer. They say to just send a few hundred dollars — maybe using cryptocurrency or a payment app like Venmo, Cash App, or PayPal — to get started. Then, poof! Your “friend” blocks you and your “investment” is gone. Turns out, that was a scammer who took over your friend’s account to get their followers (like you) to “invest” your hard-earned money.

If someone asks you to invest money in a situation like this, it could be a scam. Brush up on these ways to avoid investment scams before you respond:

• Slow down. Resist the pressure to click links or send money before you think it over. Scammers want you to act now and think later.
• Do some research. Look up the name of the company or program with words like “review,” “scam,” “fraud,” or “complaint.” See what others are saying. Then, go to Investor.gov for legit advice.
• Know the risk. There are no guaranteed returns — and no investments without risks. Scammers want you to think their opportunity is risk-free, but it’s not.

If you still think it’s a scam, do your real friend a solid. Send a quick email or text in case their account has been hacked. If you spot an investment scam on your timeline, report it to the FTC at ReportFraud.ftc.gov and the SEC at sec.gov/tcr.