How to recognize an investment scam
Investment scams can involve cryptocurrency, stocks, real estate, precious metals, coins, art, etcetera. Scammers can be strangers, or friends and relatives that do not know they are too being scammed.
Warning signs of an investment scam
Guaranteed high returns with little to no risk. All investments carry some risk, and higher returns will usually have high risk.
Is the opportunity too good to be true? Go with your gut. If something is perfect with all upside and little to no downside- something isn't right.
Pressure to act now. The opportunity is only available right now or for a very short time. Scammers will push you to act without thinking the opportunity through.
Complicated strategies. Scammers will explain that they have come up with the secret formula or perfect algorithm to achieve the reported gains. They will refuse or be unable to explain the investment.
No written documentation. You should be provided with clear, detailed documentation explaining the investment and risks.
Unsolicited offers. Emails, phone calls, texts, or social media messages offering once in a lifetime opportunity to a select few.
Easy to invest, but difficult to cash out. If you have invested with a scammer and then try to withdraw your investment, you will be told to pay fees, taxes, or to wait for the next dividend.