📈
Investment & Ponzi Schemes
Fraudulent investment opportunities promising guaranteed above-market returns, funded by new investors instead of actual profits.
$4.6B
Annual losses (US)
61,000+ annually (US)
Reported victims/year
Report Now
FTC: ReportFraud.ftc.gov
🎭 How Scammers Do It: Tactics
- ▸ Promise guaranteed returns far above market rates
- ▸ Use early investor profits (from new money) to build credibility
- ▸ Claim exclusive, proprietary, or AI-powered trading strategies
- ▸ Target affinity groups — church members, professional networks, ethnic communities
- ▸ Provide false account statements showing consistent gains
- ▸ Collapse when new investment flow cannot cover payouts
🚩 Red Flags: Stop If You See These
⚠ Guaranteed high returns with "no risk"
⚠ Returns are consistently above market, regardless of conditions
⚠ Investment strategy is secret or too complex to explain
⚠ Difficulty withdrawing funds or getting account statements
⚠ Investment is not registered with SEC or CFTC
⚠ Opportunity came through a close community or social network (affinity fraud)
🛡️ How to Protect Yourself
1. Verify investment advisors on SEC EDGAR (sec.gov/EDGAR)
2. Check broker registration on BrokerCheck (finra.org/brokercheck)
3. Be skeptical of any investment promising guaranteed returns
4. Understand that all legitimate investments carry risk
5. Get a second opinion from a fee-only fiduciary financial advisor
6. Never invest money you cannot afford to lose entirely
📋 How to Report This Scam
Report to SEC at sec.gov/tcr, CFTC at cftc.gov/complaint, and FBI IC3.