Red Flags Checklist

If you see even one of these warning signs, stop and investigate before sending any money. Multiple red flags mean walk away immediately.

Promises & Returns
  • ⚠Guaranteed returns — no legitimate investment can promise this
  • ⚠Returns that are consistently above market rates
  • ⚠"Risk-free" investment opportunities
  • ⚠Promises of insider information or a "secret" strategy
  • ⚠Claims of a proven system that always wins
Pressure & Urgency
  • ⚠"You must invest today" or "this offer expires at midnight"
  • ⚠High-pressure sales tactics that discourage you from thinking
  • ⚠Being told not to consult a lawyer, accountant, or family member
  • ⚠Fear-based pitches — you'll miss your only chance at wealth
  • ⚠Repeated unsolicited calls after you've said no
Registration & Licensing
  • ⚠The seller cannot provide a license number or registration
  • ⚠The investment is not registered with the SEC or state regulators
  • ⚠The advisor is not on FINRA BrokerCheck or SEC IAPD
  • ⚠Offshore companies or accounts with no U.S. registration
  • ⚠Reluctance to provide any documentation in writing
Transparency & Documents
  • ⚠Vague or overly complex explanations of how the investment works
  • ⚠No written prospectus, PPM, or offering documents
  • ⚠Financial statements that can't be independently verified
  • ⚠Auditors you've never heard of or that don't exist
  • ⚠Constantly changing the terms of the deal
Your Money
  • ⚠Difficulty getting your money back or withdrawing funds
  • ⚠Checks made out to the individual, not the company
  • ⚠Asked to wire funds to an overseas account
  • ⚠Profits reinvested automatically without your clear consent
  • ⚠Statements that don't match what you expected or were told
Social & Relationship Red Flags
  • ⚠Investment opportunity came from a new online friend or romantic contact
  • ⚠The 'advisor' contacted you first — cold call, email, or social media DM
  • ⚠Everyone in your church/community/group is doing it (affinity fraud)
  • ⚠The promoter is a celebrity or has impressive-looking endorsements
  • ⚠You feel embarrassed or ashamed to tell anyone about the investment
Recovery Scams (If You've Already Been Hit)
  • ⚠Someone contacts you offering to recover money you already lost
  • ⚠An upfront fee, retainer, or 'percentage' is required before any recovery
  • ⚠An attorney or firm 'guarantees' a settlement or a specific outcome
  • ⚠You're told to pay a fee or tax to 'release' funds that are supposedly waiting for you
  • ⚠They already know details of the scam you fell for (your info is on a resold victim list)
  • ⚠Pressure to act fast before you can verify the firm or attorney independently

The Golden Rule

If it sounds too good to be true, it is. Legitimate investments carry real risk. Anyone who tells you otherwise is lying to take your money.