Consumer Alert
Can you spot an investment scam?
Investment scammers claim you’ll get big returns investing in a hot new money-making “opportunity” — maybe something like cryptocurrency. Some scammers say you’ll likely make a lot of money if you follow their proven system or method. But will you?
We know that there are plenty of scammers hawking phony investment opportunities. In 2023, people told the FTC that they lost $4.6 billion to investment scams — more than any other category. And military consumers reported high median losses to investment scams: $7,000. What do you need to know to avoid investment scams?
One big red flag is if someone pressures you to commit quickly. Scammers want you to act fast and might tell you that space is limited or that you’re getting a special deal that will expire soon. They don’t want you to take time to research them or their offer. Here are some steps to take if you’re considering an investment opportunity.
- Do some homework. Search online for the name of the company or program and words like “review,” “scam,” “fraud,” or “complaint.” Other people’s experience with the company can alert you to possible problems. Visit Investor.gov, a U.S. Securities and Exchange Commission (SEC) website, for more advice on investing and avoiding fraud.
- Verify investment claims on your own. Never put money into an investment based only on what someone claims or what you read in an online newsletter, review, or blog. Scammers will often invent stories or testimonials about how successful people are at making money with their investment offer.
- Know the risk. There are no guaranteed returns — and no investments without risks. Don’t trust anyone who plays down the risk of an investment or who acts like risk disclosures are just a formality or something you don’t need to worry about.
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The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.
- We won’t post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions.
- We won’t post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups.
- We won’t post threats, defamatory statements, or suggestions or encouragement of illegal activity.
- We won’t post comments that include personal information, like Social Security numbers, account numbers, home addresses, and email addresses. To file a detailed report about a scam, go to ReportFraud.ftc.gov.
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