Imagine this: a friend messages you out of the blue on social media. They say they’ve found a way to make quick money with little to no risk — and they want to show you how. Sounds tempting, right?
Hold up. That’s likely an investment scam.
The Rise of Crypto Scams
Investment scams, especially those involving cryptocurrency, are on the rise. In fact, the U.S. Department of Justice (DOJ) recently seized a staggering $225.3 million linked to alleged crypto investment scams. According to the DOJ, this is the largest cryptocurrency seizure in Secret Service history.
These scams often start with a relationship — sometimes even impersonating someone you know. Scammers build trust, then convince victims to “invest” in what appears to be a legitimate crypto opportunity. But behind the scenes, it’s a sophisticated scheme designed to steal your money.
The DOJ’s complaint revealed that the seized funds were part of a complex blockchain-based money-laundering network. Over 400 victims were reportedly duped into thinking they were making smart investments.
And it’s not just a few isolated cases. According to the FBI’s Internet Crime Complaint Center, cryptocurrency investment fraud led to over $5.8 billion in reported losses in 2024 alone.
How to Protect Yourself
If someone, especially online, asks you to invest in a “can’t-miss” opportunity, take a step back. Here are some tips to help you avoid falling for an investment scam:
- Slow Down: Scammers want you to act fast. Don’t click links or send money without thinking it through. Take your time to evaluate the situation.
- Do Your Research: Search the name of the company or program along with terms like “review,” “scam,” “fraud,” or “complaint.” See what others are saying. For trusted investment advice, visit Investor.gov.
- Understand the Risks: There’s no such thing as a guaranteed return. Every investment carries some level of risk. If someone promises you risk-free profits, that’s a red flag.
What to Do If You Suspect a Scam
Think your friend’s account might be compromised? Do them a favor, and send a quick message through another channel to check in.
If you spot a suspicious investment pitch on your feed, report it to the FTC at ReportFraud.ftc.gov or to the SEC at sec.gov/tcr.