In today's dynamic financial landscape, the promise of quick riches can often mask sophisticated investment scams designed to steal your hard-earned money. With new technologies and evolving tactics, fraudsters are becoming increasingly adept at luring unsuspecting individuals into their schemes. At NGFCU, your financial well-being is our top priority, which is why we are empowering you with the knowledge to identify and steer clear of the most prevalent investment fraud schemes circulating today.

Key Investment Scam Red Flags and How to Protect Yourself:

• The "Guaranteed High Returns with No Risk" Trap: This is a common and dangerous red flag. Legitimate investments always carry some degree of risk, and anything promising unusually high returns with little to no risk is almost certainly a scam. Be highly skeptical of any claims that sound "too good to be true."
• Fake Investment Platforms and Deepfake Endorsements: Scammers are creating highly convincing fake investment websites and apps, sometimes even using AI-generated deepfake videos of celebrities or financial experts to endorse their fraudulent schemes. Always verify the legitimacy of any platform or endorsement independently through official sources, not through links provided by the potential scammer.
• Unsolicited Offers and Pressure Tactics: Be wary of unsolicited investment offers, whether by phone, text, email, or social media. Fraudsters often create a false sense of urgency, pressuring you to invest immediately so you don't "miss out" on a limited-time opportunity. Legitimate investment opportunities allow you time for thorough research and consideration.
• Cryptocurrency and DeFi Scams: The decentralized nature of cryptocurrency markets can be exploited by scammers. Watch out for promises of guaranteed crypto returns, fake mining operations, or "pump and dump" schemes where the price of a lesser-known coin is artificially inflated before the scammers sell their holdings, leaving others with worthless assets. Research any cryptocurrency project thoroughly and only use reputable, regulated exchanges.
• Requests for Unusual Payment Methods: A major warning sign is if you're asked to pay for an investment using unconventional methods like gift cards, wire transfers to an individual's account, or direct cryptocurrency transfers. These methods offer little to no recourse for recovery. Legitimate investments typically involve transfers through regulated financial institutions.
• Complex Strategies That Are "Too Hard to Explain": If an investment professional cannot clearly explain how the investment works, what the risks are, and how it generates returns in simple terms, consider it a red flag. Scammers often use confusing jargon or misleading wording to hide the fraudulent nature of their schemes.

NGFCU is Here to Help

Staying informed and exercising caution are your best defenses against investment fraud. Before making any investment decision, especially if it involves a significant amount of money, we strongly encourage you to speak with a trusted financial advisor or contact us directly at 800.633.2848. We are committed to helping you make sound financial decisions and protecting your assets from fraud. If you suspect you've been targeted by a scam, please reach out to us immediately so we can assist you.