Can You Spot an Investment Scam on Social Media?

Can you spot an investment scam if it comes from an actual friend’s page on social media? Is someone you know suddenly posting screenshots of bank accounts and claiming they will teach you to make money quick with little to no risk? This is likely an investment scam.

A friend may announce that they have become an online investment guru. They will post about have a foolproof method of earning big money. Here is how the scam will play out: You may comment on your “friend’s” post. Your “friend” directly messages you back through social media. They explain the process with few details. They may say that this investment will guarantee big returns and that it is only a limited time offer. To get you started, they will request you sent a few hundred dollars using cryptocurrency or a payment app (like Venmo, Cash App, or PayPal). You send the money. POOF! Your “friend” blocks you and your “investment” is gone. Turns out this was a scammer. The scammer took over your friend’s account to target followers (like you) to “invest” their hard-earned money.

If you ever come across a similar situation where someone asks you to invest money, remember that it could be a scam. Think about the ways to avoid investment scams before you respond.

  • Slow down. Resist the pressure to click links or send money before you think it over. Scammers want you to act now and think later.
  • Do some research. Look up the name of the company or program with words like “review,” “scam,” “fraud,” or “complaint.” See what others are saying.
  • Know the risk. There are no guaranteed returns – and no investments without risks. Scammers want you to think their opportunity is risk-free, but it is not.

If you still think it is a scam, send a quick email or text to your actual friend in case their account has been hacked. If you spot an investment scam on your timeline, report it to the FTC at ReportFraud.ftc.gov.

Source:

https://consumer.ftc.gov/consumer-alerts/2025/05/can-you-spot-investment-scam-social-media

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