Investors Urged to Stay on Alert as Investment Scams Surge

COLUMBUS, OH – The Ohio Department of Commerce Division of Securities is warning of a new scam.

According to the Federal Trade Commission, consumers lost almost $5.7 Billion in investment scams in 2024, marking a 24% increase from the year before.

The FTC reports that about 62% of Americans own some form of stock investment and there are some simple steps you can take to minimize the risk.

John Crist, the Director of Compliance with the Division of Securities, says to do your own research before putting any sort of funds down.

“You need to know who you’re investing with, you need to know how they’re going to make money, you need to know how much you’ll pay in fees,” Crist said. “All of those details are yours to control as long as you have the money. Once you give it to someone else, it’s theirs.”

Crist says these investment scams often seem to have guaranteed returns or promises a lucrative profit with minimal risks, but that’s not the case.

It’s only after the money is handed over to the scammer that the victim realizes it was too good to be true.

“Among a lot of frauds one of the most common things you’ll see is that the fraudster will try and instill a fear of missing out,” Crist said. “So, they’ll make you think and feel that you have to invest right now, before you do your homework , before you talk to your family and friends, before you even have the chance to make sure you know that this is appropriate for you. They’ll try and make you think that if you don’t invest now, you’re going to miss out on the opportunity of a lifetime.”

If you or a loved one has fallen victim to an investment scam, you can report it to the Division of Securities by calling 1-800-788-1194.