Common Scams

Scammers use a variety of techniques to convince investors to hand over their hard-earned money. They often target victims through social media and investment-related group chats.   
 
Scammers convince investors to invest more and more into accounts that are not real and then steal the funds. As a result, victims typically lose everything they invested, and are targeted again in new or related scams.   
 
The following are common — and often related — scams reported to the SEC’s Office of Investor Education and Advocacy. 

Advance Fee Fraud. If someone has asked you to pay money for taxes, fees, or any other reason before your funds will be released from an investment opportunity, you may be experiencing a scam. This scam is often associated with fictitious investment accounts that have quickly increased in value.  
   
Impersonation Schemes. If someone contacts you claiming to be from the SEC and requests an upfront payment to recover or release funds, this is a scam. Scammers also impersonate registered firms or individuals and may set up an account name, profile, or handle designed to mimic a particular firm or individual.  
   
Relationship Investment Scams. In a relationship investment scam, scammers reach out online or through text messages, attempting to build trust through friendship or a romantic connection to convince you to put money into phony investments.  

Report investment scams to the SEC at sec.gov/tcr. You can also report to:  

Last reviewed: July 15, 2025 

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