A “financial advisor” calls about a guaranteed-return investment. A WhatsApp group offers exclusive stock tips. A new acquaintance shares a cryptocurrency platform that has been “very good” to them. They are after your retirement savings. Investment fraud cost adults 60+ $3.5 billion in 2025 — the largest single fraud category in the FBI’s annual report.
How This Scam Works
Pattern One: The Cold-Call Advisor. A man calls claiming to be from a brokerage you have never heard of. He pitches a “limited time” investment — pre-IPO stock, oil and gas wells, foreign currency trading, precious metals — with guaranteed returns of 15%, 20%, even 50%. Real, legal investments do not work this way. The SEC requires risk disclosures. There is no such thing as guaranteed returns.
Pattern Two: The Crypto Group Chat. You receive a friendly text or social media message that turns into a connection. They add you to a “private investment group” on WhatsApp or Telegram led by a “successful trader” who shares daily picks. Members post screenshots of their gains. You invest a small amount. You see fake gains. You invest more. When you try to withdraw, the platform demands “taxes” or “verification fees” first. Then everyone disappears.
Pattern Three: The Self-Directed IRA Roll. A scammer convinces you to roll your retirement account into a “self-directed IRA” they help you set up. They direct you to invest in cryptocurrency, gold, foreign real estate, or some other untraceable asset they control. By the time you discover the asset is worthless or fake, your retirement is gone — and there is often no way to recover it.
The FBI’s IC3 2025 Annual Report found that investment fraud was the single largest financial loss category for adults 60+, totaling $3.5 billion. The average loss per victim was over $38,000. Maryland’s older adults are heavily targeted because retirement accumulation makes Maryland one of the wealthier states per capita for the 65+ population.
What They Actually Say
Three Free Government Sites Defeat Most Investment Scams
Three free federal websites tell you in 60 seconds whether an “advisor” or “investment” is legitimate:
1. FINRA BrokerCheck: brokercheck.finra.org — Search by name. Shows whether a person is a registered broker, where they have worked, and any complaints or sanctions filed against them.
2. SEC EDGAR: sec.gov/edgar — Search by company name. Real publicly-traded companies file with the SEC. If a company is not in EDGAR, it is not a real public company.
3. SEC Investment Adviser Search: adviserinfo.sec.gov — Search by name. Real investment advisers must register with the SEC or with state regulators.
If a person or company is not in any of these databases — they are not legitimate. There are no exceptions.
What To Do · What To Never Do
After You Hang Up
This guide covers one of 222 documented scams targeting Maryland’s older adults. Every variant we track lives in the encyclopedia, searchable by name, situation, or what they said to you.
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