New markets attract scams
New investors do not yet know what normal looks like, real names are easy to copy, and offers spread fast on messaging apps. Investors abroad are often targeted because they send money across borders.
Stock Market Basics · Lesson 9 of 10
Spotting scams
The red flags, the checks to make before you pay, and what to do if you have been targeted.
6 minutes · 8 questionsLesson 9 · Card 1 of 4
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New markets attract scams
New investors do not yet know what normal looks like, real names are easy to copy, and offers spread fast on messaging apps. Investors abroad are often targeted because they send money across borders.
The red flags
Guaranteed or very high returns. Pressure to act now. No licence you can verify. Payment to a personal account or mobile wallet. Rewards for bringing in friends. An unclear product. Unexpected contact. Answers that change.
Check before you pay
Get the firm's licence details in writing, then check with ECMA using details from ECMA's own website, not from the message that reached you. Pay only into an account in the firm's registered name and get a written receipt.
If it has already happened
Stop sending money. Keep evidence. Tell your bank right away. Report it to ECMA and the police. Warn people close to you without naming individuals. Be careful with anyone who offers to recover your money for a fee.