How Do You Identify Investment Frauds – 2024 Guide


Many people lose hundreds of dollars on fraudulent investments every year. With the rise of social media and communication apps, these scams are only getting more elaborate as we speak.

If you’re an investor looking for your next big investment opportunity, there are a couple of things you should be aware of first.

Here, we’ll go over them all to help you protect your assets from potential scams and frauds.

So, without any further ado, let’s get right to the bottom of it!


Unsolicited contact

Have you been getting some weird e-mails full of promises of low-risk high-reward investments you can make? You’ve been hand-selected by Google themselves to participate in this amazing opportunity? Yeah, well, not really.

We know you’re probably not engaging with these unrealistic offers yourself, but you’d be surprised at how many people fall into these seemingly obvious traps. An investment opportunity is never without any risks, and it usually needs to be found (by doing tons of research) – it won’t just appear out of nowhere.

So, if random people are contacting you about investment opportunities, people you’ve never even met, it’s probably best that you ignore their messages, no matter how persistent they are.

You have no way to contact them back

Scammers don’t want you to know anything more about them than what they themselves tell you. If the company that’s been contacting you about investment cannot or won’t provide you with the information you need, they likely don’t have good intentions. This especially goes if they explicitly „forbid“ you from contacting them.

Like all good investors, learning everything there is to know about the offer should be your primary concern. Scammers simply won’t be able to provide you with the necessary information. All levels of secrecy and ambiguity are red flags in the investment world.


Ponzi schemes

Ponzi schemes are the most common type of investment fraud out there. They’ve been around for a while and they all work on the same principle: taking investment money to pay old investors. It’s kind of like a pyramid scheme of the investment world.

These aren’t always easy to spot, as modern scammers have found ways to sound quite convincing. However, as long as you do enough research and ask them to go into detail about the investment itself, you’ll be able to avoid getting into this ordeal quite easily.

As you can probably see by now, doing your research and asking for detailed information is crucial to avoiding fraud.

The company is extremely persistent and pushy

Scammers want to make money off of you and they’re prepared to go to incredible lengths to achieve it. If the company is unusually pushy or persistent, there’s likely a scammer hiding behind the entire ordeal. You shouldn’t ever feel pressured or harassed into investing your money, not for anything. Real companies and firms aren’t desperate to find investors, so avoid anyone who doesn’t seem to take a no for an answer.

Similarly, scammers might start bombarding you with messages and calls as soon as you’re not responding immediately. They’re also usually following pre-written scripts, which will certainly feel odd to you after a while.


It’s not all transparent and straightforward enough

As we’ve mentioned before, fraudulent companies won’t share any overly specific details about the investment, as in many cases, it simply doesn’t exist. If you feel like your concerns and questions are getting ignored and you’re hearing only the positive sides of the agreement, it’s probably time to move on.

As noted at, truthful and reliable companies and brokerage agents are always going to be transparent about the risks of the investment they’re offering. If you’ve fallen victim to any of these scams, we urge you to get lawyered up immediately, as it may be your only chance to get some of your money back.

You’re asked to make a quick decision

Large investments should always be well-thought and calculated. It’s not something done in a rush, and especially not while being pressured. If the company is saying you’re required to make your decision in a matter of hours or days, they’re probably trying to scam you for your money.

You should be given enough time to evaluate the risks and benefits of your investment properly. Avoid all deals that are not providing you with enough time to make the right decision.

Fake crypto services

Cryptocurrencies remain a risky business – most of their values are too unstable and unpredictable.

Additionally, there are many „fake“ crypto platforms preying on ambitious investors and their money. If you’ve decided to invest in crypto, no matter which currency it may be, make sure you’ve done enough research beforehand. That especially goes if you’re not well-educated on cryptocurrencies and blockchain technology – it can all get quite complex.

Guaranteed returns

All investors know there’s no way to guarantee high returns, no matter how amazing the opportunity may be. If you’re getting bombarded with claims of guaranteed returns on your future investment, you’re probably dealing with fraud.

The same goes for high-return low-risk offers. Those simply do not exist in the real world, otherwise, everyone would be an investor. Make sure you don’t fall for these strategies and consult with your financial advisor before making any larger investments. You should never invest more than you can afford to lose, especially when it’s a high-risk investment you’re making.


The bottom line

All in all, there are many ways you can identify investment fraud in 2024. As long as you do your research, ask the important questions, and think carefully before acting, you’ll be able to avoid those scams with ease.

We advise you to continue educating yourself on the matter, as new frauds and scams arise every day, especially online. If you happen to fall victim to one of these frauds, make sure to contact a reliable attorney as soon as you can.

We hope our article helped you learn some more about the topic in question and we wish you the best of luck in all of your future endeavors.