Common Investment Scams

Protect yourself from these four common investment scams.

Affinity fraud - The fraudster joins a group or organization and uses your group’s identity to gain your trust. Once accepted, they convince members to invest in their scheme.
“Exempt” securities - The fraudster may pitch that the investment is only available to very wealthy people and an exemption is made for you. Be suspicious if you get an unsolicited phone call about a hot tip on a business that is about to “go public”. On their own, exempt securities are not scams. Exempt securities may be sold without a prospectus, but they’re limited to accredited investors or certain other conditions.
Forex - The fraudster promises low risk and high returns on the foreign exchange market. Unregulated firms may be marketing their services outside of the rules. Your money may not be invested as you were told. The forex market is dominated by large international banks with access to sophisticated technology, highly trained staff and large trading accounts.
Ponzi/pyramid - The fraudster offers you a chance to get rich quickly on a so-called great investment. Early investors are simply paid from more recent investors’ money. Later, the fraudster disappears with all the money.
Pig Butchering scam - The fraudster targets you online through phishing. In this long-term investment scam, cybercriminals get to know you and try to win your trust to get you to invest in a cryptocurrency scheme. The name "pig butchering" refers to the act of "fattening you up" like a pig to gain your trust and get you to invest more and more of your money. Once they get enough of your earnings, they will close down the scam or "slotter you like a pig" to disappear with your money.

Try the Scam Spotter Tool to see if you are being scammed. The tool also provides facts about the signs you should look for in a legitimate investment.