Investment scams surge, Ohio investors urged to stay vigilant

As investment scams surge across the country, Ohio investors are being urged to stay vigilant.

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The Ohio Department of Commerce Division of Securities issued a reminder for Ohioans to stay on high alert to protect their assets as investment scams are draining investor portfolios at “never-before-seen levels.”

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Approximately 62% of Americans own some form of stock investment.

“Financial investments are one of the most reliable ways to build wealth and achieve life goals,” Ohio Securities Commissioner Andrea Seidt said. “Unfortunately, fraudulent schemes prey on individuals’ trust and aspirations.”

In 2024, consumers lost $5.7 billion to investment scams, according to the Federal Trade Commission (FTC). That’s a 24% increase from 2023.

Investment scams often promise guaranteed returns or lucrative profits with minimal risk, according to the Ohio Department of Commerce Division of Securities.

They often target consumers through online ads, social media posts, and direct messages.

Scammers will use deceptive tactics such as fake success stories and pressure to act quickly to convince victims to invest in fraudulent opportunities or unregistered securities.

Victims often discover that neither the investment nor the company behind it is legitimate after the money is handed over, and it’s too late to recover the money.

“Being aware of these tactics and knowing how to evaluate potential investments are crucial steps in safeguarding your hard-earned money,” Seidt said.

The Division of Securities highlights the following five key warning signs of investment scams:

• Guarantees of high returns with little or no risk.

• Pressure to act immediately, creating a false sense of urgency.

• Lack of transparency or vague investment details.

• Promises of access to “secret methods” or exclusive programs.

• Encouragement not to consult others or seek outside advice.

To avoid being scammed, Ohioans should make informed decisions when choosing to invest. The Division recommends that investors take the following steps to stay safe:

• Ask whether the individual or entity promoting the investment is licensed and registered.

• Call the Division of Securities at 1-800-788-1194 or check with the Financial Industry Regulatory Authority (FINRA) to verify the license and registration of promoters and investments.

• Think about the risks and claims being made. Research the investment thoroughly and consult an independent professional, such as an attorney or accountant, for advice.