In 2024, the Federal Trade Commission (FTC) reported a total of $5.7 billion in losses from investment scams nationwide, with a median loss of over $9,000 per victim. These scams may start in much the same way as romance/confidence scams and may come from a seemingly random, accidental text message. The fraudster will then strike up a conversation and friendship that includes information about his or her success with an investment. The pitch may seem even more credible because your money is not going to this new friend, but to what appears to be a legitimate investment operation that may have a website or app. Scammers generally promise a high rate of return and no or very low risk, but the investment is questionable at best, and may not even exist at all.

Tips to Avoid Investment Scams:

  • Don’t trust promises of unusually high returns or risk-free investments. Every investment contains some amount of risk.
  • Don’t feel rushed. Pressure to act immediately is a red flag of a scam.
  • Any investment opportunity requiring you to utilize a crypto kiosk is a scam.
  • Be very wary of foreign or “off-shore” investments, which can be a sign of a scam.
  • Don’t be persuaded by claims that “everyone” is in on the deal. Many scams target members of the same social circle or religious group to give victims a false sense of security.
  • Don’t rely solely on the information the investment promoter gives you; a scammer can easily create phony materials. Always do your own research before investing your money – even if the person promoting the investment is someone you know.
  • If you are considering buying stock, check out the company’s financial statements by using the Security Exchange Commission’s (SEC) EDGAR database (sec.gov/edgar).
  • Verify whether the person contacting you is licensed to sell securities in Georgia by contacting the Georgia Secretary of State’s office at sos.ga.gov or 1-844-753-7825. You can also use the following resources to see if the person or company is the subject of any complaints or violations:
  • FINRA’s “Scam Meter” tool (tools.finra.org/scam_meter) gives you a report of any red flags based on your answers to a few questions.
  • To report an investment scam, contact the Georgia Secretary of State’s Securities Division at sos.ga.gov/securities-division-georgia-secretary-states-office or by calling 404-654-6021.