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Investor Education

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Investor Education

Avoid Investment Scams and Fraud

Investment fraud is on the rise. That’s why it’s more important than ever to learn how to spot the signs of a scam. There is no investment that is “risk-free”. If you feel rushed or pressured into making a decision, take a step back and utilize the tools below to protect yourself — and your money.

Common scams and fraud to avoid

  • Romance

    These scams are becoming harder to spot with the rise of AI. Characterized by a romantic relationship, the scammer may request money for a new or exciting “opportunity.”

  • Cryptocurrency

    These scams thrive on the lack of information and urgency. No legitimate business will demand a cryptocurrency investment before providing more information.

  • Influencer

    These scams utilize financial influencers (finfluencers) and engaging videos to promise big returns. Investigate claims with a critical eye before investing.

  • Affinity

    These scams can be hard to spot right away. Scammers build trust within a community before pushing “opportunities” on individuals in the group.
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An abstract digital illustration showing a person wearing a hooded sweatshirt, with the face completely obscured in shadow. A warning icon with an exclamation mark appears over the face inside a rectangular frame, suggesting a security alert. The background is dark blue, and large orange glitch-like blocks overlap the image, creating a fragmented, cyber‑security themed effect.

Report Investment Fraud

With MiCLEAR, you can submit a report if you have suspicions that someone is attempting to scam you currently, or has scammed you previously.

Learn More

Protect your money — no matter your age

More Resources

Learn how to grow, and protect your money with the resources below.

  • Videos

    Videos

  • Military Patches containing US Air Force, US Navy, US Army and US Marines

    Military

  • Fraud Picture

    Fraud Prevention Center

Digital Toolkit

Investor Education E-newsletter

Avoid Investment Scams and Fraud Flyer

Evite Las Estafas Y Fraudes En Inversiones

شغلا بنجت لايتحلااو يرامثتسلااَ 

Example Post with Content Placement

 

 

Graphic featuring stacks of currency with a warning symbol overlay. The text reads 'If it sounds too good to be true... it might be investment fraud.' The design includes blue and orange accents and the LARA Licensing and Regulatory Affairs logo.

Social Post: "Too Good to be True?"

Post Copy:

That new opportunity sounds pretty nice... almost too nice.

How can you tell if it's too good to be true? Watch for the signs:

---Phantom Riches/Guaranteed Returns---

Watch for claims like "incredible gains" or "no risk, big return!"

---Urgency---

A "once-in-a-lifetime opportunity" that's "gone tomorrow" might just be a way to put the pressure on so you don't investigate an investment.

---The "Halo" Effect---

Likable, charismatic scammers may fake actual qualifications with a trustworthy act.

Read up on more warning signs of an investment scam at Michigan.gov/InvestorEducation.

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Two individuals sitting at a table reviewing documents and a mobile phone, with a laptop and notebook in front of them. The image includes the LARA Licensing and Regulatory Affairs logo and text reading 'Before You Invest' followed by three steps: Pause, Investigate, and Verify.

Social Post: "Invest With Confidence"

Post Copy:

You can avoid being scammed before your next investment with three steps:

---Pause---

Take a moment to consider the opportunity - many scams rely on false urgency.

---Investigate---

Always question an investment and research a business and its products.

---Verify---

Use BrokerCheck to research the background and experience of financial advisers and firms.

Find more ways to protect your money at Michigan.gov/InvestorEducation.

Post Graphic
Graphic with the text 'Investment fraud comes in different forms' above three icons representing romance scams, affinity scams, and influencer scams. The image includes the LARA Licensing and Regulatory Affairs logo and features a blue and orange design.

Social Post: "Common Scams"

Post Copy:

Not all investments (or the people who tell you about them) are what they seem. Learn how to spot the signs of common investment scams like:

---Romance---

Scammers form an  online relationship before requesting money for a new or exciting "opportunity."

---Affinity---

Scammers build trust within a community of people before pushing exciting "opportunities" on individuals in the group.

---Influencer---

These scams use financial influencers and engaging videos to promise big returns.

Learn more about common investment scams at Michigan.gov/InvestorEducation.

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The information provided on this website is not comprehensive, is not offered as legal or investment advice, and is not a substitute for competent legal or financial counsel. The Securities Division provides this information to give you an overview of the topics discussed. You should not rely on the accuracy of this information but should carefully review all applicable statutes and regulations with the assistance of legal counsel.

Contact Us:

Department of Licensing and Regulatory Affairs (LARA)
Corporations, Securities & Commercial Licensing Bureau (CS&CL)
Securities and Audit Division
Address:  PO Box 30018, Lansing, MI 48909
Overnight Mail (FedEx/UPS): 2407 N. Grand River Ave, Lansing, MI 48906
Phone: (517) 335-5237
Fax:  (517) 763-0039
Email: LARA-CSCL-Securities-Audit@michigan.gov