The 11 Red Flags
- Guaranteed or outsized returns. Nothing honest guarantees returns. Nobody consistently returns 5% a week. If a pitch promises either, it is a lie.
- Pressure to decide now. “This offer closes tonight.” “You’ll miss the launch window.” Pressure is a scam’s best friend because it stops you verifying.
- You can’t easily find the firm on SEC IAPD or FINRA BrokerCheck. Legitimate firms are registered. Unregistered isn’t automatically fraud — but it’s a reason to go slow.
- They want you to deposit into a personal account. Legitimate advisers never, ever ask for deposits to a personal name. The money goes to a regulated custodian.
- Crypto, “wrapped” tokens, or complicated wallet transfers. Not all crypto is fraud — but crypto makes recovery essentially impossible, which is why fraudsters love it.
- They contacted you first. Especially via dating apps, LinkedIn out of the blue, or random Telegram/WhatsApp groups. Legitimate opportunities don’t need to cold-DM you.
- The “advisor” is overseas or unreachable by phone. If the only contact is chat, something’s wrong.
- You see other people’s winnings on screen. Fake dashboards showing other investors’ balances are a classic manipulation.
- Withdrawing requires a “tax” or “unlock” fee. This is the signature of a Ponzi exit scam. You will never see your money.
- The strategy can’t be explained in plain English. If the person pitching can’t explain how the money is actually made, they probably don’t know — or there’s nothing being made.
- Recovery offers after a loss. If you’ve been scammed and someone contacts you offering to recover the money for a fee, that is almost certainly the same scammers or their partners.
What To Do If You’ve Spotted Them
- Stop sending money. Immediately.
- Call your bank’s fraud team if any money has already moved.
- Report to the FTC and the SEC.
- Document everything — save every email, screenshot, phone number.
- Do not click any further links from the person.