How to Spot Online Investment Scams
Learn the red flags of investment scams and how to protect your money.
Investment scams often show up in ads, emails, text messages, or direct messages. These offers may sound exciting or urgent, but they often leave out important details. Here’s what to look for that can help you protect your money and avoid scams.
How Investment Scams Work
Investment scams often begin with an unexpected message. For example, someone may claim to be an investment expert or advisor. The offer may promise quick profits or say the opportunity is limited. Scammers often push you to act fast and ask for money before giving clear information.
Signs of Investment Fraud
- Promises of big or guaranteed money
Scammers may promise fast profits or guaranteed returns. They might say you will double your money or earn enough to quit your job. Real investments never guarantee profits - Claims of little or no risk
All investments involve risk. If someone says there is no chance of losing money or that it takes little time or effort, it is a red flag. - Few or unclear details
Scammers often avoid explaining how the investment works. If details are missing or not provided in writing, be cautious. - "Secret" methods
Scammers may claim they have a special system that always works. There is no secret method that guarantees profits. - Pressure to act quickly
Scammers may rush you to make a decision or discourage you from doing research. This is a common warning sign.
Ways to Protect Yourself
Verify the person or company offering the investment
If someone claims to be a licensed advisor, look them up on an official website or regulatory database to confirm they are legitimate.
Research the opportunity using trusted sources
If an investment involves cryptocurrency, take extra time to research it. While cryptocurrency is a legitimate and growing market, it is also commonly used in scams.
Do not share personal or banking information online
Never give out your bank account details, Social Security number, or login information through direct messages or emails.
Avoid sending money to someone you only know online
Be cautious if you are asked to send money through wire transfers, gift cards, or payment apps to someone you have never met in person.
Talk to a trusted financial professional before investing
Discussing the opportunity with a banker or financial advisor can help you spot warning signs you may have missed.
Making Smart Investment Decisions
Smart investing starts with taking your time. Research opportunities, avoid pressure to act quickly, and protect your personal information. When an offer feels rushed or unrealistic, stepping back can help you make a safer choice.
Jefferson Bank is here to support you with reliable information and trusted guidance when you need it.
