In just the first quarter of this year, consumers have reportedly lost over $672 million dollars to investment fraud. Last year, consumers reported $1,679 million in losses according to the Federal Trade Commission (FTC). There is no denying that investment fraud is rampant.
“Research shows that education and educational interventions can play a strong role in increasing consumers’ ability to recognize and avoid potential frauds,” said Gerri Walsh, President of the FINRA Investor Education Foundation. “By knowing about the scams that are out there, how they operate, and the red flags of fraud, you can better identify and avoid fraudulent situations.”
Investment fraud consists of false promises and elaborate success stories to entice people to invest their money in a phony scheme. Nowadays, it often begins with a message from a supposed friend via social media raving about their significant returns with only a minimal investment. After being persuaded to open the account, they often send fake screenshots or reports showing the investment producing great returns.
The problems arise when the victim tries to withdraw funds and is asked to pay high, unexpected fees. Unfortunately, it doesn’t stop there — they continue to make financial demands using elaborate excuses such as account upgrades, taxes,…
