Ohioans advised to remain on the lookout for investment scams

Ohioans are being warned to keep a close eye on their assets, as the rate of investment scams continues to rise at unprecedented levels nationwide. The Federal Trade Commission (FTC) reported that consumers lost $5.7 billion to investment scams in 2024 — a 24 percent increase from 2023. 

The Ohio Department of Commerce Division of Securities is advising Ohioans to stay on high alert and take simple preventative measures to minimize their risk. Investment scams, according to the department of commerce, often promise guaranteed returns as well as lucrative profits with minimal risk. Scammers lurk online, targeting consumers through social media posts, digital advertisements and even direct messages. They often deceive consumers through fake success stories and a pressure to act quickly.

Once money is handed over or "invested" in these scams, it is often unrecoverable, the Ohio Department of Commerce Division of Securities stated in a Thursday press release.

"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," Ohio Securities Commissioner Andrea Seidt stated in the release.

The department highlighted several other warning signs investors should be aware of when it comes to investment scams:

- 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 asset and investment safety, Ohioans are advised to ask potential scammers if the investment is licensed or registered and call the Division of Securities at 1-800-788-1194. Additionally, investors can call the Financial Industry Regulatory Authority to verify the license and registration of suspected scammers.