Can You Spot an Investment Scam on Social Media?

Can You Spot an Investment Scam on Social Media?

Scammers are getting smarter — and sometimes their tricks come from places you least expect. What if an investment scam shows up right on your friend’s social media page? It might look like your friend suddenly became an online investment guru, posting screenshots of bank accounts and promising quick, easy money with little to no risk.

Here’s how these scams often unfold:

An old friend floods your feed with flashy videos claiming they’ve found a foolproof way to earn big money fast. If you comment or reach out, they send you a direct message with vague details and promise guaranteed returns. They pressure you to send money quickly — often through cryptocurrency or payment apps like Venmo, Cash App, or PayPal. Then, just like that, your friend’s account goes silent or blocks you, and your “investment” disappears.

What really happened? Their social media account was likely hacked, and scammers are using it to lure followers like you into fake investment schemes.

How to Protect Yourself from Social Media Investment Scams

If you see something like this, keep these tips in mind before you respond or invest any money:

1. Slow Down
   Don’t let anyone rush you into clicking links or sending money. Scammers rely on pressure tactics to cloud your judgment.
2. Do Your Homework
   Search the company or program name with words like “review,” “scam,” or “complaint.” Visit trusted sites like Investor.gov for reliable advice.
3. Understand the Risks
   There’s no such thing as a risk-free investment or guaranteed returns. If someone says otherwise, be very skeptical.
4. Help Your Friend
   If you suspect your friend’s account has been hacked, send them a quick message or email to warn them. They might not even know what’s happening.
5. Report It
   If you spot an investment scam on social media, report it to the Federal Trade Commission at ReportFraud.ftc.gov and to the Securities and Exchange Commission at sec.gov/tcr.

At Patriot Federal Credit Union, we’re committed to helping you stay safe from scams and fraud. Always be cautious with investment offers, especially those that seem “too good to be true.” When in doubt, reach out to us at 888-777-9982 before making any decisions.