Beware of investment scams

Take your time and research carefully before investing

Investment_Crypto scam article 2200x1000 copy-min

Fake cryptocurrency and investment opportunities are among the biggest scams on social media. It starts when a scammer contacts you, usually by sending you a direct social media message. They’ll start off by trying to build a relationship but then quickly share information about a “great investment opportunity” that helped them “make so much money so fast.”  

Warning signs of a social media investment scam:

  • Promises of very high returns with zero risk e.g., to double or triple your money in a very short time
  • The social media profile shows exotic overseas travel destinations, expensive cars and designer clothes
  • Urgency to invest – fraudsters do this to limit the amount of time you may spend researching and thinking about the investment
  • Anything sold as a “once-in-a-lifetime opportunity” should be a warning sign
  • Requests to recruit new investors
  • Professional-looking investment websites or crypto exchanges with little to no information about the company 
  • If it is difficult to understand how the investment product will make returns, you should be cautious
  • The scammer offers to walk you through your first few trades and claims to have insider knowledge of the market

Tips to avoid investment and cryptocurrency scams:

  • Do a thorough online search
  • If an investment is not registered with a body like the Financial Services Conduct Authority (FSCA) it is not regulated. Contact financial bodies to verify the registration of an entity
  • Don’t share any personal information until you’ve verified whether the company is legitimate or not 
  • Do not send money to anyone who has reached out directly over social media