How to Recognize Investment Scams on Social Media

Scammers are using Facebook, Instagram, and TikTok to run fake investment schemes — learn the warning signs before you lose money.

In this guide (5 steps):

1.Know the warning signs of investment scams
2.Watch out for "pig butchering" scams
3.Before investing, verify with FINRA
4.Report investment scams to the FTC and SEC
5.Be skeptical of financial advice from strangers online

Know the warning signs of investment scams

~32s

Every investment scam has the same features: (1) guaranteed high returns with no risk — no real investment guarantees profits; (2) urgency — "this offer expires in 24 hours"; (3) unsolicited contact — someone you don't know reaches out about an investment opportunity; (4) requests for cryptocurrency, wire transfer, or gift cards — legitimate brokers never request these payment methods; (5) pressure to recruit friends and family.

Warning

In 2024, older adults reported losing more money to investment scams than any other fraud type, often losing tens of thousands of dollars. Most of these scams start on social media.

Watch out for "pig butchering" scams

~29s

One of the most common investment scam formats is called "pig butchering." A friendly stranger contacts you on Facebook, Instagram, or a dating app, builds a friendship over weeks, then introduces you to a "great investment opportunity" — usually a fake cryptocurrency platform. You deposit money, see fake profits on the platform, try to withdraw, and discover you've been scammed. The scammer disappears.

Quick Tip

The Federal Bureau of Investigation (FBI) warns that these scammers are patient and skilled at building trust over weeks or months before introducing the investment.

Before investing, verify with FINRA

~17s

Before putting any money into an investment recommended online, check whether the person or company is registered at brokercheck.finra.org. This is a free tool from the Financial Industry Regulatory Authority that shows whether a broker or firm is licensed. Unregistered brokers offering high returns are almost always scammers.

Report investment scams to the FTC and SEC

~18s

If you've been contacted by a scammer or lost money, report it to: the FTC at reportfraud.ftc.gov; the SEC (Securities and Exchange Commission) at sec.gov/tcr; the FBI's Internet Crime Complaint Center at ic3.gov. Reporting helps investigators track down and shut down these operations and protects other people from the same scams.

Be skeptical of financial advice from strangers online

~29s

Real financial advisors are licensed and regulated by state and federal agencies. They don't recruit clients through Instagram comments or Facebook Messenger. If someone contacts you unsolicited about making money with investments, assume it's a scam. The general rule: if someone contacts you first with an investment opportunity — especially online — it's almost certainly not legitimate.

Quick Tip

Talk to a family member, friend, or your bank before sending any money to an investment you learned about online. A second opinion costs nothing and can save thousands.

You Did It!

You've completed: How to Recognize Investment Scams on Social Media

Need more help? Get Expert Help from a TekSure Tech

Investment scams have become the number-one way scammers steal money from older adults, according to the Federal Trade Commission. The scammers post on Facebook, Instagram, TikTok, and YouTube showing fake screenshots of huge profits and promise to teach you how to make money in cryptocurrency, stocks, or foreign currency trading. The investments are entirely fake.

Rate this guide

How helpful was this guide?

investment scam

social media

fraud

facebook

cryptocurrency

scam