How to Identify Investment Scams

You probably hear about financial scams all the time. With how much you hear, you might even think you know everything needed to not fall victim to a financial scam yourself! That being said – with online investment apps and cryptocurrency becoming more and more popular, so are new types of scams. According to NerdWallet, “54% of Americans say at least one financial scam has been attempted against them in the past two years, and 18% lost money in a financial scam in the last two years.”

This rise in scams means that finding trustworthy investment opportunities can seem harder than ever. While you probably know how to keep your existing accounts safe, you should also know how to make sure that your future finances are just as protected.

Here’s what to do if you’re evaluating an investment opportunity:

• Do some homework. Search for whoever is making the promises alongside terms like “review,” “scam,” “fraud,” or “complaint.” You can also visit Investor.gov, a resource from the U.S. Securities and Exchange Commission (SEC), if you want more information on investments and related frauds.
• Verify investment claims on your own. Scammers will over-promise while also providing less information than you’d need to make an informed decision. If you hear about an investment opportunity that seems too good to be true, take time to research as much as you can about it.
• Know the risk. All investments come with risks, and no investments come with guaranteed returns. Anyone who says otherwise is probably not telling you the full truth or hasn’t done the proper research themselves. By staying informed and cautious, you can better protect yourself from investment scams.

Our APCI FCU Financial Resource Center is a great go-to for current articles and tips to protect your accounts from fraudsters.