Investment fraud red flags

What to know

1. Treat "high returns, little or no risk" as the biggest red flag. Every investment involves risk; scammers dress it up with fancy websites, videos and pictures of rich lifestyles.
2. Slow down when someone rushes you: a short deadline, a deal for "only a few investors," or "inside information" before others find out. Any reputable professional will let you take your time.
3. Don't take investing advice from anyone who contacted you first online, through a messaging app or by text, no matter how friendly they've become. Relationship scams often start with a social media message or a "wrong number" text and build trust over time.
4. Check how they want to be paid. Be wary of credit cards, gift cards, overseas wires, payment apps or crypto; checks or wires to an individual; paying a different company than the one you're investing in; or a P.O. box address.
5. Look the seller up, even if you know them personally. Investor.gov's search tool shows whether a professional is currently licensed or registered, and you can check brokers' and advisers' disciplinary history free through SEC and FINRA databases.
6. Make sure it's really them. Scammers copy real advisers' names, profile photos and firm logos. Find the firm's contact information yourself through its Form CRS and reach out that way.
7. Get it in writing and research it yourself. Avoid any investment the seller won't describe in writing; sloppy documents with typos are a red flag. Look up a company's financial statements on the SEC's EDGAR system.
8. Keep your info to yourself. Don't give a stranger your bank or brokerage details, Social Security number, tax forms, ID, birthdate or even your phone number or email.