When you invest, you’ll find that knowledge is power. The more you know about your investment choices, and who is offering them, the better prepared you’ll be to make good decisions. And this diligence can also help protect you against investment scams.
How widespread is this activity? Consider this: Investment fraud losses totaled more than $4.5 billion in 2023, according to the FBI’s Internet Crime Report. Here are some common types of scams: Not all cryptocurrency offers are scams, but many are.
The scammers will contact you via social media, claiming they’ve made a lot of money in crypto and are willing to help you do the same. They may direct you to a website or app to invest, but the “company” taking your money may not even exist, and, after taking your money, may disappear. These programs claim to have “proven” strategies that can enable you to get rich by investing in financial products.
But these strategies are dubious at best and can cost you thousands of dollars that could otherwise go into an investment plan based on your goals, risk tolerance and time horizon. Typically, a real estate scam tries to get you to invest in a “world-class” or “luxury” property development, but these properties may take years to build, if they’re built at all. Also, various real estate “seminars” claim they can teach you how to get wealthy by buying and selling real estate, but these programs are expensive and usually worthless.
Scammers who call themselve.