Fraud Awareness During World Investor Week

During World Investor Week (October 6–12), the FINRA Investor Education Foundation shared new research showing how easily many people can fall for fake investment offers. The study, part of an upcoming report called Investors in the United States: A Report of the National Financial Capability Study, found that many Americans don’t recognize common signs of fraud.

In the survey, researchers showed a fake investment that promised guaranteed and very high returns—two classic red flags for scams. Even so, about half of the people surveyed said they would invest. This shows that many Americans are still at risk of losing money to get-rich-quick offers.

The results also showed who might be most at risk. Younger and less-experienced investors were more likely to fall for the fake deal. People who invest in risky assets like cryptocurrency or meme stocks, or who get their financial advice from social media, were also more likely to say yes to the scam. Surprisingly, income didn’t make a big difference—people earning under $50,000 were almost as likely to invest as those making over $100,000. That means anyone can be targeted if they don’t know how to spot warning signs.

At Rezny Wealth Management, we see these findings as a serious reminder for all long-term investors. A lack of fraud awareness can do more than cause a bad investment—it can wipe out someone’s entire life savings or retirement fund. Scammers today are smarter than ever. They often pretend to be real companies or use social media influencers to seem trustworthy. Many of these scams play on emotions like fear of missing out, overconfidence, or the desire for financial security. Once money is sent to a fake platform or advisor, it’s almost impossible to get it back.

For retirees or those nearing retirement, that can be devastating.

Gerri Walsh, President of the FINRA Foundation, stressed that all investments carry some risk—and that any offer promising guaranteed or unusually high returns is a major red flag. The study also showed that people with stronger financial knowledge were much less likely to fall for scams. However, social media has made things more challenging. Nearly 75% of people who follow financial influencers online said they would have invested in the fake offer, showing how quickly misinformation can spread.

At Rezny Wealth Management, we believe the best protection against fraud is education and awareness. Building real wealth takes time, discipline, and a solid plan—not speculation or “get-rich-quick” schemes. Protecting your portfolio means not only managing market risk but also watching out for scams that seem too good to be true. Stay alert, ask questions, and work with professionals who are transparent and put your best interests first. In today’s fast-moving financial world, being informed isn’t just smart—it’s your best defense.