Recent changes in the US political landscape have propelled the development of numerous investment projects, prompting many to seize popular investment opportunities to make money. However, scammers are also taking advantage of the situation. Those who are not familiar with the investment market need to be especially cautious of these dangerous signals of fraud, as otherwise they may suffer heavy losses.
The Consumer Advice Division of the US Federal Trade Commission (FTC) has stated that investment scams exist in various fields, including financial markets, cryptocurrencies, real estate, precious metals, or coins. The scammers’ promotional slogans are almost identical, claiming to help individuals make big money quickly or easily with almost no risk.
For example, investment scam groups typically attract attention initially by offering “free investment training or seminars,” but soon proceed to charge victims exorbitant additional training or coaching fees, falsely promising to help them increase their investment success rate. Sometimes scammers may even deceive victims into believing they can enjoy a “one-stop service consisting of experts” to learn “investment skills,” among other things. However, all these strategies are merely aimed at deceiving people for money.
So how do investment scam groups target victims? Scammers employ various tactics such as informational advertisements, social media posts, or ads interspersed on major websites, claiming that by seizing hot new money-making opportunities like cryptocurrencies, individuals can reap lucrative rewards. They also assert that their training and coaching programs can make investments “risk-free” and highly profitable.
In their advertisements, scammers encourage victims to participate in free events, order free materials, or watch free introduction videos to learn the secrets to getting rich. To enhance persuasiveness, scammers may offer financial or investment advice, showcase certain “success stories” to promote a “luxurious life after becoming wealthy,” or even have “celebrities” endorse them. Most people who fall victim to such schemes never recover their investments.
1) Cryptocurrency investment scams are the most common. Scammers typically target individuals directly on social media platforms, including dating apps, claiming they have made a lot of money through cryptocurrency investments and are willing to share how to invest. When the target audience responds, scammers will further guide them to a website or application for investment. They may forge false reports of rapid growth in investment amounts in the initial stages to entice victims to increase their investments. Once victims put all their money in, scammers will close the account and disappear without a trace.
2) Real estate investment scams: Scammers flood the market with advertisements, claiming to have a “world-class” real estate development investment project. You may see pictures of luxurious development projects and facilities on roadside billboards, online ads, or social media platforms. While scammers sweet-talk you into investing in properties, once you decide to purchase and hand over your money, you may find that the so-called investment project will take years to develop, lack the promised facilities, or may not have even started construction. If you wish to resell the land, you may struggle to find buyers. US federal agencies caution the public that investing in real estate is not “risk-free,” but rather entails high risks.
3) Precious metals and coins investment scams: Scammers often present themselves as experienced “metal traders” or “rare coin dealers.” Regardless of whether market prices rise or fall, scammers will claim it is the best time to invest. Their goal is to create a sense of urgency to prompt you to act quickly. However, in the end, not only will scammers fail to deliver on their promises, but they will also keep your money for themselves.
Before investing in gold bars, silver coins, collector coins, and other precious metals, individuals can first review the warnings on precious metal fraud issued by the US Commodity Futures Trading Commission (CFTC).
Understanding the methods scammers use to lure people into investment scams can help prevent falling victim to them. The following are some signs of investment scams listed by the FTC Consumer Advice Division.
People often say that investing involves risks and one cannot always profit without losses. Only scammers guarantee that you can make big money and promise high profits and returns. Anyone claiming that the risk is very low or non-existent, or that making money requires little time and effort without providing detailed investment information or documents, is likely operating a scam. If someone is pressuring you to invest quickly, you should be very cautious, as this is also a warning sign of a scam.
How to avoid becoming a victim of investment scams? Avoid rushing into investing in projects; verify the reliability of projects through multiple channels and do not blindly invest based solely on someone’s single promotion or online advertisements. Remember, investment always carries risks, so do not trust anyone who downplays the risks associated with investing.