Scam and risky investment checklist

Gambling-like products: why most people lose

These products are legal in many countries, but they are built for short-term speculation with leverage, and the maths works against beginners. If someone is selling you a course, a signal group or "a proven system" for them, walk away.

CFDs

A contract for difference is a leveraged bet on a price going up or down. You never own the asset, fees are charged overnight, and losses can exceed what you planned. EU and UK brokers must publish their loss rates: typically 60% to 85% of retail accounts lose money.

Forex trading

Retail forex is usually traded with leveraged CFDs. Currencies move in small steps, so brokers offer high leverage, and that is what wipes out accounts. It is also a favourite theme of scams, "signal" groups and paid courses.

Copy trading

You mirror another trader's positions automatically. Their past results may be luck or survivorship (you only see the winners), the strategies often use high leverage, and when they lose, you lose, not them.

Leveraged crypto and futures

Crypto already swings 10% in a day. Add 10x to 100x leverage and a normal move liquidates your position in minutes.

Binary options

An all-or-nothing bet on a price in minutes. Banned for retail investors in the EU, the UK and several other countries because of widespread losses and fraud.

Meme coins and "next 100x" tips

Most new tokens lose almost all of their value. Early insiders often sell to the people the hype attracts.

If you have already sent money

1. Stop all payments and don't pay any "withdrawal fee".
2. Call your bank or card provider today.
3. Keep every message, receipt and wallet address.
4. Report it to the police and your financial regulator.
5. Ignore anyone offering to "recover" your money for a fee; recovery scams target victims.

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