man investment-scam-red-flags
Investment and Crypto Scams
The warning signs of a fake opportunity, and why you can never withdraw the 'profit'.
$8.6B investment-fraud losses in 2025, the top crime type (FBI IC3, 2025).
By the numbers
- $8.6B investment-fraud losses in 2025, the top crime type (FBI IC3, 2025)
- +32% year-over-year jump in investment-fraud losses (FBI IC3, 2025)
- $7.2B crypto-investment fraud losses in 2025 (FBI IC3, 2025)
Signs the opportunity is a trap
- Guaranteed or outsized returns. Promises of high, steady, risk-free gains. Real markets do not work that way.
- Urgency and exclusivity. A closing window, an insider tip, or a spot reserved just for you.
- A slick app you were sent to. A platform reached through a contact or an ad, showing profits you cannot withdraw.
The withdrawal trap
- Fees to release your funds. Taxes, commissions, or 'verification' deposits demanded before any payout.
- A coach who pushes you to add more. Encouragement to invest more, borrow, or tap retirement to 'maximize' the gains.
Who is really behind it
- Unlicensed sellers and fake firms. No registration with your regulator, or a clone of a real company's name.
- Manufactured social proof. Profit screenshots, celebrity 'endorsements', and group-chat hype.
- Pressure from a 'mentor' or group. A coach or chat that keeps pushing you to deposit more, faster.
Do and don't
Do
- Check the firm and the seller against your national regulator before you pay.
- Test a withdrawal of a small amount early, before depositing more.
- Assume any guaranteed or risk-free return is a lie.
- Get independent advice from a licensed professional you found yourself.
Don't
- Do not invest through an app you reached from an ad, a DM, or a new contact.
- Do not add money to 'unlock', 'verify', or 'release' a withdrawal.
- Do not borrow, or tap retirement, to chase a position.
- Do not trust profit screens you cannot actually cash out.
The one move
Check any platform or adviser against your national regulator before sending a cent, and treat anyone who guarantees returns or rushes you as a scammer. If you cannot freely withdraw a small amount, the rest is already gone.
If it happens
- Stop depositing. A blocked withdrawal means the scheme already has your money.
- Document everything: the platform, the wallets, and every transaction.
- Contact your bank or exchange to attempt a recall or a freeze.
- Report to ic3.gov, the FTC, and your securities regulator (SEC or CFTC in the US).
Go deeper
For the bigger picture, read what is social engineering and how to spot a phishing email. See these warning signs in real cases in the weekly briefings.
Frequently asked questions
// guides/investment-scam-red-flags --helpWhat are the red flags of investment and crypto scams?
Watch for guaranteed or outsized returns, urgency and exclusivity, a slick app you were sent to, fees to release your funds, plus any pressure to act fast, skip a check, or keep it secret.
What is the one move that stops it?
Check any platform or adviser against your national regulator before sending a cent, and treat anyone who guarantees returns or rushes you as a scammer. If you cannot freely withdraw a small amount, the rest is already gone.
What should I do if it already happened?
Stop depositing. A blocked withdrawal means the scheme already has your money. Document everything: the platform, the wallets, and every transaction. Contact your bank or exchange to attempt a recall or a freeze. Report to ic3.gov, the FTC, and your securities regulator (SEC or CFTC in the US).