Think Before You Click: Investment Scams Explained
Security
Scammers are always finding new ways to present fake investments as safe opportunities, making it increasingly important to pause and ask questions. Across nearly all investment scams, regardless of the product, platform, or technology, there’s a shared playbook. To protect yourself, learn how to spot the patterns.
The key to (fraudulent) success
Most investment scams succeed not because of financial sophistication but because of emotional manipulation. Scammers rely on getting you to trust them, tapping into your fear of missing out, acting like an authority you shouldn’t question, and/or pressuring you with claims of urgency.
Common scam scenarios
Keep an eye out for these common approaches that investment scammers are using today:
- Digital asset and cryptocurrency scams. These include fake crypto investment opportunities promising guaranteed gains as well as meme coin and token “pump-and-dump” schemes, where scammers artificially inflate prices and then cash out and disappear.
- Social media and messaging app scams. Scammers infiltrate platforms like WhatsApp, Telegram, Facebook, and TikTok to distribute fraudulent investment links; recruit victims to private groups; and execute fake stock tips, pump-and-dump pitches, or crypto fraud.
- “Pig butchering” scams. Named for the way the scammers “fatten up” victims by building relationships (often via dating, social media, or messaging apps), these scams introduce a bogus investment platform with fake returns. The scammers disappear once they access their victim’s “investment” funds.
- Imposter and investment group scams. Fraudsters impersonate real financial professionals, firms, or trusted sources to lure investors into fake deals.
- Advance fee and withdrawal fee frauds. These involve demands for fees, supposedly for taxes or unpaid bills or to unlock frozen funds. The scammer tells victims that they must pay a fee to get out of trouble or access large returns (which never appear).
- Artificial intelligence and deepfake-enabled scams. With advancements in artificial intelligence, fraudsters use fake audio or video to simulate trusted advisors, tricking people into wiring money.
- Affinity fraud. These scams target specific groups (clubs, religious communities, professional networks) using shared trust to push bogus investments.
Protect yourself
When it comes to investment scams, the details change, but the patterns don’t. To avoid the scam:
- Be skeptical of promises of guaranteed or unusually high returns.
- Verify credentials. (Use a trusted search engine or an official website; don’t rely on the contact info they give you.)
- Ignore unsolicited investment offers.
- Never pay fees upfront to access investments.
- Use only regulated platforms or advisors.
- Do your own research, and don’t rely on social media tips.
Get help
Harborstone is here to help you protect your money and your peace of mind.
If something feels wrong, even if you’re not sure, reach out before taking action. Stop communicating with the person who contacted you and call us or someone else you trust.
