How To Avoid Scams As A New Investor

Investor Alert: Beware of Social Media 'Investment Group' Imposter Scams FINRA has seen a recent significant rise in investor complaints due to fraudulent "investment groups" promoted across social media. #Scammers pose as registered investment advisers, advertising "stock investment groups" on platforms like Instagram, later shifting to encrypted group chats on WhatsApp to pitch investments. Since November, FINRA has received numerous investor complaints, alleging losses totaling millions of dollars. Sadly, this might be just the beginning. These imposters falsely portray themselves as registered professionals, often fraudulently claiming ties to well-known public figures and respected figures in the investment industry. Scammers lure in investors by initially promoting investment in actively traded stocks, and then steer them into low-priced, low-volume U.S.- or Hong Kong-listed stocks, potentially causing significant losses. They coerce victims into opening accounts at specific broker-dealers and manipulate the price of securities, leaving investors unable to sell, eventually causing the value to plummet. To guard against these scams, be cautious of unsolicited investment messages and conduct thorough research into investment professionals before committing. Utilize FINRA BrokerCheck (brokercheck[.]finra[.]org) to verify credentials, and refrain from investing without independent evaluation. It's crucial to remain vigilant against these and similar fraudulent activities. #financialadvisors and #RIAs, if you're reading this, consider passing along these best practices to your clients to help ensure their financial security. If you believe you've been targeted by a stock manipulation scheme, submit a regulatory tip to FINRA. #InvestorProtection #FinancialSecurity https://lnkd.in/eWreqyqm

🚨 Wake-Up Call: The Alarming Rise of Sophisticated Cryptocurrency Scams 🚨 I just got off the phone with another victim who fell for a classic #pigbutchering scam. This one hurt—a six-figure loss that left the victim devastated. But what really got my attention? The level of sophistication these cybercriminals are now operating with. Here’s how they did it: 🪜 The Setup: They roped the victim in with a seemingly legitimate training class, building trust and setting the stage for the scam. 💬 Transition to Private Messaging: Next, they moved the conversation to WhatsApp and Telegram—away from prying eyes and into their carefully controlled environment. 📱 The Fake Trading App: The victim was then instructed to download a fake trading app. This app made it look like the victim was making money hand over fist, all while the scammers had full control. 💰 The Money Transfer: Here’s the kicker. When the victim went to the bank to wire the money, they were told not to mention that it was for a cryptocurrency investment. The scammers spun a tale about how it would negatively impact the bank’s deposits and tax implications. This is where the bad guys are really stepping up their game. Take a look at the photo I attached—they’re getting better at this. 💔 The Loss: After the wire transfer, the victim was left with nothing but a fake app and a huge financial loss. The money was gone, and the scammers had vanished. This isn’t just a story—it’s a wake-up call. These criminals are getting smarter, but so can we. Here are 5 Tips to Avoid Falling Victim: 🔒 1. Beware of Unsolicited Investment Offers: If someone promises you guaranteed returns out of the blue, run the other way. Scams like these prey on hope and desperation. 🔒 2. Verify Before Trusting: Always do your homework. Research the platform, check reviews, and if something feels off, trust your gut. A quick check can save you from a world of pain. 🔒 3. Be Transparent with Your Bank: If you’re being told to keep secrets from your bank, that’s a giant red flag. Transparency with your financial institution is your best defense. 🔒 4. Resist High-Pressure Tactics: Scammers love to rush you. They’ll create a false sense of urgency to get you to act without thinking. Slow down, take your time, and make informed decisions. 🔒 5. Stay Informed and Educated: The more you know, the harder you are to scam. Keep yourself updated on the latest fraud tactics and share that knowledge with others. #Cybercriminals are evolving, but by adopting a @CyberSecure Mindset, you can stay one step ahead. Protect your hard-earned money and your peace of mind. For more on how to develop a #CyberSecure Mindset, visit www.cybersecuremindset.com. #CyberSecurity #CryptocurrencyScams #CyberSecureMindset #OnlineSafety #ScamAwareness #StayVigilant #DigitalDefense

I’ve lost $100,000 to scammers 3 different times. I’m honestly embarrassed to write that, but if I’ve lost out on all of that money I figure the least I can do is educate others about the risks 😂. I’ve had an amazing return on my overall portfolio because of my willingness to make big bets, but with that I’ve also learned some hard lessons. Do these 5 things and you’ll avoid 99% of the most likely investing scams: 1. Extensively Google the names of founders who approach you. Look for lawsuits. Look for fishy or conflicting records on their actions and why they pulled the plug on previous projects. 2. If you have any doubts, reach out to people who worked with those founders in the past and ask them about their experience. And if don’t know them personally or have a reliable character referral, be very skeptical.  3. Don't trust your gut. Invest defensively. I get excited about movements I believe in. I buy into high energy. This energy has helped me scale a lot of my businesses and find success, but it can also make me too trusting of others—when what I need to do is focus on the numbers. Shamelessly ask for all of the hard numbers you’d need to justify the decision even if you’d never met the founder. I have a friend or two that I bring along on my deals who are great at asking the hard and uncomfortable questions. I need someone more skeptical in the deal with me. 4. Look for “black swans”. Do research that explores the question, “What are the things I don’t know I don’t know?” Every time you get scammed it’s a “black swan event”, where something you didn’t previously think was possible or even know about comes to pass. 5. Treat your friends like enemies if you want to stay friends. Sounds very cynical, but what I mean by this is to make sure that you have tight contracts and agreements in writing, where goals, expectations, and terms of cancellation are clearly outlined. Have a clear and clean exit plan the minute things go south. Anyone have any other tips they’d add? #scam #scammers #aiscam #business #investing #lifelessons #mistakes #growth