Washington – The Federal Trade Commission is reminding the public to be cautious when approached with investment opportunities from friends, acquaintances, or members of community groups. Officials warn that some scammers exploit personal connections or shared values to gain trust and convince individuals to invest. Investment scams can occur online, through social media, or in person. Scammers often promise high returns with little to no risk and may misrepresent the profits other investors have made in areas such as stocks, cryptocurrency, forex trading, or other ventures. After an individual invests, scammers may provide false updates to make it appear as though the investment is performing well. In reality, the investments are either nonexistent or extremely high-risk, resulting in potential financial losses. To protect against investment fraud, the FTC advises individuals to research the reputation of any investment company or promoter. Online searches using the company or promoter name combined with terms such as “review,” “scam,” or “complaint” can provide useful information. Investors should also verify licenses and registration status. The FTC recommends using available databases and tools to check the backgrounds of anyone promoting an investment. The FTC emphasizes that all investments carry risk. Individuals should be cautious of anyone who minimizes risk or treats risk disclosures as unimportant, as this is a common tactic used by scammers. The public is also encouraged to learn about affinity fraud, where scammers pose as members of a trusted group, through resources on FTC.gov. Suspected investment scams can be reported directly to the FTC at ReportFraud.ftc.gov.
