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Verify Before You Trust: Protecting Yourself from Investment Fraud in the Digital Age

Investing 101
person on their phone

In the spirit of World Investor Week and the 2025 themes, we’re focusing on one of the biggest challenges facing investors today: fraud. While technology and digital finance have made investing easier and more accessible than ever, they’ve also given scammers new ways to trick people out of their hard-earned savings. 

Fraud today doesn’t always look like a poorly written email from a stranger. Thanks to artificial intelligence and the rise of social media, scams can appear sleek, professional, and convincing. Fake websites can mirror real ones almost perfectly. Fraudsters set up investment “clubs” on messaging apps, even borrowing the names of real portfolio managers to look legitimate. And in some cases, scammers use stolen personal data and AI-generated IDs to break into retirement accounts. 

These tactics may be new, but the red flags remain familiar: promises of “can’t lose” investments, pressure to act fast, or requests to send money through unusual methods like gift cards or overseas wires. Smart investors know to slow down, ask questions, and double-check the source before making a move. 

That’s why fraud prevention is at the core of this year’s World Investor Week themes. It’s about reminding investors that while digital tools can be helpful, they don’t replace careful research, patience, and skepticism. The best way to protect yourself is to verify first, then trust. 

Here are a few steps every investor can take: 

  • Always check whether a firm or professional is properly registered. FINRA’s BrokerCheck and the SEC’s Investment Adviser Public Disclosure database are good places to start. 
  • Use strong passwords and two-factor authentication to keep your accounts safe. 
  • Treat unsolicited investment offers with caution, especially those you see on social media. 
  • If you can’t confirm the source of a message or website, don’t click or reply—delete it instead. 

As we celebrate World Investor Week, it’s worth remembering that the same technology driving financial innovation can also make scams harder to spot. Staying informed, protecting your information, and taking the time to verify opportunities are the best defenses you have. 

As fraudsters become more innovative, it’s important to remain vigilant. By combining smart habits with a healthy dose of skepticism, investors can confidently move toward a secure financial future.