Investment Scams – Protect Your Money
Overview
With rising expenses, more people are searching for ways to earn extra income. Investment and trading markets—worth trillions globally—offer opportunities, but they also attract scammers. Investment scams are among the most common and damaging types of fraud.
Types of Investment Scams
Cold Calls: Scammers contact inexperienced traders by phone, posing as legitimate investment brokers. They create fake websites and may claim to have government licenses to appear trustworthy. Often these calls come from overseas, making it harder to track them.
Phishing & Fake Ads: Fraudsters send emails or post advertisements promising guaranteed returns. Clicking these links redirects victims to scam websites designed to look legitimate, tricking them into investing.
Pump and Dump: Scammers artificially inflate the price of a stock by spreading hype. Once the price rises, they sell their shares, causing the stock value to crash and leaving investors with heavy losses.
Warning Signs to Look Out For
- Unsolicited calls trying to convince you to invest in a scheme.
- Emails or ads promising “risk-free” investments with high returns.
- Claims of not needing a government license or vague license details—always verify with the regulator.
- Lack of transparent company information or verifiable contact details.
- Pressure to invest quickly without proper time for research.
What to Do if You’re a Victim
If you fall victim to an investment scam, don’t feel ashamed. Scammers often use sophisticated psychological tactics, and countless people are deceived every day. Report the scam to relevant authorities, inform your bank immediately, and share your experience to help warn others.