You might be interested in making money through investments. Who isn’t? So offers that promise big returns might draw your attention…and scammers know this. They use those promises and clever schemes to lure you in and, unfortunately, people are losing big money on investment scams. In fact, FTC data shows reports of more than $7.9 billion in losses to investment scams, with a median individual loss of more than $10,000 in 2025. Do you know how to spot and avoid investment scams?
Scammers might reach you through social media, WhatsApp, or through online ads, promising you’ll make a lot of money quickly. These messages might also come from a friend or love interest offering you “coaching” to learn how to make a fortune in stocks, forex, or cryptocurrency. After you invest, they’ll often say your investments are doing well, maybe even showing fake “proof” that you’re making money. The reality? The investment isn’t real and you end up losing all your money.
To avoid an investment scam:
- Remember that investments always involve risk. If anyone plays down the risk of an investment or acts like risk disclosures are just a formality you don’t need to worry about, keep your money. Those are scammers who want you to think their opportunity is risk-free when it’s not.
- Check out the reputation of the investment company, its officials, and its promoters. Search online with their name plus words like “review,” “scam,” or “complaint.” Go through several pages of search results.
- Check for licenses and registrations. Many investment scams start with unlicensed people or unregistered firms, so use the free search tool on Investor.gov to check out anyone recommending or selling investments. For investments in precious metals or coins, check out the CFTC database.
Report investment scams to the FTC at ReportFraud.ftc.gov.
