Investment and romance scams are among the costliest and fastest-growing types of fraud, and they can happen to anyone. These deceptive schemes often begin on social media or online platforms, where scammers take time to build trust before attempting to access a victim’s money or personal information. Below, we break down how these scams typically unfold, highlight common warning signs, and share practical steps to help protect yourself and others.
Investment Scams
These scams occur when someone is approached—either in person or online—with a “once-in-a-lifetime” investment opportunity. Scammers may promote stocks, cryptocurrency, or real estate, promising high returns with little or no risk. They often use fake account statements to show supposed growth or send small payouts early on to build confidence and encourage larger investments.
Romance Scams
Romance scams typically begin online through dating apps, social media, or even online games. Scammers pose as someone they’re not and work to quickly build emotional trust. They usually avoid meeting in person and eventually ask for money, often claiming an emergency, travel issue, or banking problem.
How to Protect Yourself
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Trust your instincts: If something feels off or sounds too good to be true, it probably is. Always research individuals or companies offering investment opportunities, and never feel pressured to make quick financial decisions.
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Be cautious of love-bombing: Excessive flattery, rushed intimacy, or requests for secrecy are red flags. Talk with trusted friends or family and get a second opinion.
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Limit your exposure: Keep social media accounts private and avoid sharing personal or financial details online.
How to Respond
If you suspect you’re dealing with a scammer, stop all communication immediately and block their phone numbers, emails, or social media accounts. Scammers rely on shame and embarrassment to keep people silent—but fraud can happen to anyone. If you believe you’ve been scammed, contact your credit union right away to discuss steps to protect your accounts and explore recovery options. You can also report the incident to local law enforcement or the FBI at http://www.ic3.gov, which helps investigators track scams and prevent others from becoming victims.
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