Investment Scams Cost the Typical Victim Over $9,000
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Scammers are killing it these days.
Americans lost $12.5 billion to fraud last year – a 25% increase from 2023, according to a new report from the Federal Trade Commission. And even though the number of fraud reports remained about the same, the percentage of us who lost money jumped from 27% to 38%.
The most costly type of fraud? Investment scams, which often promise to make you lots of money quickly and easily, and with almost no risk. These accounted for $5.7 billion lost — a 24% increase from 2023. And the median loss was $9,196 per person!
Here are some of the most common investment scams, according to the FTC:
Crypto scams: People message you on social media (or dating apps!) claiming to know the secret to making big bucks from crypto investments. They’ll direct you to a fake investing app or website that will send you bogus reports showing big returns.
Real estate scams: Shady “developers” promise big returns on an investment property, using ads, telemarketing, social media posts or websites to pitch you on a luxury development with loads of amenities. But once the money changes hands, you realize it’s bare bones or not even built.
Investment training scams: Scammers promise “guaranteed” results with “patented” or “secret” investing strategies that will let you quit your job and change your life. They may show celebrity testimonials. They’re often offering worthless seminars and coaching at exorbitant prices.
Precious metal and coin scams: Scammers calling themselves “dealers” create a sense of urgency, telling you there’s no better time to invest in precious metals and coins. But they fail to deliver the coins and/or charge high markups and unnecessary storage, insurance, and administrative fees.
(Also worth noting: The most common type of scam in 2024 was imposter scams, in which people impersonating companies, government agencies, e-commerce sites, friends or family bilked victims out of $2.95 billion.)
So what? The old adage applies here: If it sounds too good to be true, it probably is. It’s worth keeping up with the latest scams and techniques so you can distinguish between legitimate investment opportunities and a hoax. Hallmarks of a scam include:
• Guarantees of major returns with little time, knowledge, or effort required.
• Sketchy details about the project or investment.
• Intense pressure to act quickly.
• Unsolicited offers.
Related Reading
• What You Can Do to Avoid Investment Fraud (Securities and Exchange Commission)
• Spotting Scams This Tax Season: The IRS Doesn’t Text People (SoFi)
• The Biggest Online Scams to Watch for in 2025 — And How to Avoid Them (PCMag)
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