Ohio investors urged to stay on high alert as investment scams surge
As investment scams drain investor portfolios at never-before-seen levels, the Ohio Department of Commerce Division of Securities is issuing a reminder for Ohioans to stay on high alert to protect their assets.
According to the Federal Trade Commission (FTC), consumers lost a staggering $5.7 billion to investment scams in 2024, marking a 24% increase from 2023. With approximately 62% of Americans owning some form of stock investment, there are some simple preventative steps Ohio investors can take to minimize their risk.
Investment scams often promise guaranteed returns or lucrative profits with minimal risk, targeting consumers through online ads, social media posts, and direct messages. Scammers often use deceptive tactics, such as fake success stories and pressure to act quickly, to convince victims to invest in fraudulent opportunities or unregistered securities.
Once money is handed over, victims often discover that neither the investment nor the company behind it is legitimate. By the time they come to that realization, the money they had invested may be unrecoverable.
“Financial investments are one of the most reliable ways to build wealth and achieve life goals,” said Ohio Securities Commissioner Andrea Seidt. “Unfortunately, fraudulent schemes prey on individuals’ trust and aspirations. Being aware of these tactics and knowing how to evaluate potential investments are crucial steps in safeguarding your hard-earned money.”
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 ensure Ohioans are able to make informed decisions, the Division recommends investors take the following steps to stay safe:
1. Ask whether the individual or entity promoting the investment is licensed and registered.
2. 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.
3. 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.
The Division also encourages Ohioans to access a range of available resources on its website at https://com.ohio.gov/divisions-and-programs/securities/consumers-and-in….