THE WARNING-SIGN LIBRARY
Use these examples to examine a pitch more carefully. A warning sign calls for investigation; it is not proof that a particular offer is fraudulent.
8 patterns · Examples are illustrative, not accusations about any person or company.
Impersonation
“You can see my registration right here.”
A real broker’s identity or a copied registration page can be used by someone else.
Open the official database yourself and call the firm using contact information from its record.
Sales pressure
“It lists next month. Your profit is locked in.”
A confident timeline does not establish an IPO, allocation or a future selling price.
Ask for original filings and company statements. Plan for no IPO and no near-term resale.
Ownership
“We have exclusive access to this famous company.”
The business may be real while the seller’s claim to shares is unsupported.
Identify every entity between you and the company. Obtain evidence of ownership and transfer authority.
Fees
“There is no commission, so there is no fee.”
An embedded price markup can still materially change what you pay.
Ask for a complete written price and fee breakdown, including the seller’s cost basis where available.
Payment
“Our banking details changed. Use this account today.”
Unexpected payment changes or mismatched beneficiaries warrant an independent check.
Call a previously verified number. Do not use the number in the change request.
Impersonation
“Everyone in this private group has already made money.”
Screenshots, testimonials and apparent group consensus can be fabricated.
Leave the conversation and research the people, firm and transaction through independent sources.
Recovery
“Pay the release tax and we can get your money back.”
People who lost money can be targeted again by a supposed recovery service or government impersonator.
Do not send another payment based on a recovery promise. Contact your bank and official reporting channels.
Ownership
“Our Form D means the SEC approved this deal.”
A notice filing or registration does not mean a regulator has endorsed an investment.
Read the actual filing and ask what legal exemption and investor requirements apply.
Further reading from the original sources
SEC pre-IPO investor alertFINRA pre-IPO fund risksSEC: False claims of registrationFBI IC3 resourcesINTERESTED, BUT WANT TO BE CAREFUL?
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