Investment fraud

Investment fraud encompasses a wide spectrum of schemes, from classic boiler rooms selling worthless shares to sophisticated crypto-based Ponzi schemes and pig-butchering operations. The common thread is a promise of returns that are implausibly high, unusually consistent, or 'guaranteed' — characteristics no legitimate investment can offer.

Fraudulent investments are marketed through cold calls, social media adverts featuring celebrity endorsements (often deepfakes), online forums, and through relationships built by romance or social scammers. Fake trading platforms show fabricated profits and allow small initial 'withdrawals' to build confidence before the victim deposits large sums and cannot withdraw.

Key warning signs: returns promised regardless of market conditions; pressure to invest quickly; difficulty withdrawing funds; unregulated platform; referral bonuses for bringing in friends or family.