Be Alert to Signs of Imposter Investment Scams
Imposter scams can take many forms, and there are new variants every day. In investment-related imposter schemes, a common thread is that scammers misuse the name of real registered investment professionals or firms to create the appearance of legitimacy. Imposter schemes rely on a tactic known as source credibility--building trust by claiming to be properly registered and employed by a well-known firm--and they can be alarmingly convincing.
Below are some of the imposter tactics scammers have used to target investors and tips to protect against imposter scams.
Imposter scams can start with bad actors who pose as registered investment professionals or other financial experts or who advertise "stock investment groups"--also called "investment clubs"--on various social media channels. These bad actors often direct investors to encrypted group chats on messaging applications such as WhatsApp or Telegram.
Source Fool.com
