Let’s talk about something that’s becoming all too common: investment scams. They’re sneaky, convincing, and designed to make you feel like you’re making a smart financial move. In reality, you’re being set up to lose money.
It Starts with Trust
Scammers are clever. They often start by building a connection. Maybe they say they’re part of your community, share your values, or know someone you know. Whether it’s online, on social media, or even face-to-face, they’ll use that sense of familiarity to gain your trust.
Once they have your attention, they’ll make it sound like a dream opportunity: high returns, little to no risk. Sounds amazing, right? That’s the hook.
They’ll even lie about how much others have made — “My cousin doubled her money in a week!” — to make it seem like you’re missing out if you don’t jump in.
How to Spot the Red Flags
Before you invest a single dollar, take a step back and do some digging. Here’s how to protect yourself:
- Research the company’s reputation. Use search terms like “review,” “scam,” or “complaint” alongside the company name.
- Check for licenses and registrations. Legitimate investment firms and advisors should be registered.
- Use Investor.gov. It’s a great tool for background checks on people recommending or selling investments.
- Remember: all investments carry risk. If someone says otherwise, that’s a major red flag. Contact Chelsea Groton Financial Services offered through Osaic Institutions for a second opinion on the investment presented. Members of the Financial Services team will review and educate you on navigating authentic investment opportunities. Looking for a comprehensive financial plan? Connect with a team member today by calling 860-570-4040.
If You’ve Been Targeted — Speak Up
If you suspect you’ve encountered an investment scam, report it at ReportFraud.ftc.gov. Your report could help prevent others from falling into the same trap. If it sounds too good to be true, it probably is. Trust your instincts, do your homework, and don’t let scammers take advantage of your trust.
Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA / SIPC. Chelsea Groton Financial Services is a trade name of Chelsea Groton Bank. Osaic Institutions and Chelsea Groton Bank are not affiliated. Products and services made available through Osaic Institutions are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.
