National Consumer Protection Week: Protect Your Investments From Online Scams

Denver - March 6, 2026 - This week is National Consumer Protection Week and the Colorado Division of Securities wants to help consumers recognize some of the most common online scams and how to avoid them.

Of the $5.7 billion estimated by the Federal Trade Commission (FTC) that was lost to investment scams in 2024, a significant amount happened online. The FTC estimates $1.9 billion was lost on social media platforms alone.

Individuals of all ages can lose their hard-earned money to scams, and tools like artificial intelligence (AI) are amplifying the crisis. Some of the most common schemes include:

Unsolicited Cryptocurrency Investment Scams
These scams often begin with unsolicited contact through direct messages on social media, dating apps, texts, calls and emails. Fraudsters will boast about how much they've profited from cryptocurrency investments and persuade others to invest through a fake website or app. They share fabricated statements on fake dashboards to "prove" that investments are growing, leading consumers to invest more money. When scammers receive the victim's payment, they may keep the scam going hoping the investor makes additional payments. They eventually shut down the accounts and disappear, leaving victims with nothing.

Cryptocurrency Recovery Rooms Scams
Sometimes, there's a second layer to cryptocurrency fraud called cryptocurrency recovery room scams. Fraudsters pose as recovery experts, companies, nonprofits, regulators or law enforcement and offer to help victims recover funds lost in the initial scam. Contact is made through phone calls, direct messages and emails. To seem legitimate, the scammer confirms the victim's crypto account or wallet, sometimes for a fee.

Once trust is established, fraudsters charge a recovery fee. They'll take the money without recovering anything and it's unlikely that victims will recoup any losses.

Romance Scams
Scammers slowly build intimate relationships with individuals through dating apps, social media, emails and phone calls before asking for money. It's a long con and a practice called pig butchering. They'll brag about their financial success to entice their love interest to invest. Sometimes, they make up elaborate stories about how they need the money to unlock more money. At the end of the scam, there's just loss and heartache.

How Can Consumers Protect Themselves?
Here are a few recommendations about how consumers can protect their investments from scammers:

• Don't answer unsolicited social media messages, calls, texts or emails, and never click on links from unknown senders. If the message appears to be from a legitimate, reputable company, go to that company's website directly. If it's from a lesser-known company, it's best to not respond.
• For romance scams, the recommendation is to not send money or cryptocurrencies to an online romantic partner. It's likely victims will never recover their money.
• Before sending money or cryptocurrencies to online contacts, pause. Don't fall for false urgency. Take time to think about the scenario, and do internet searches using the word "scam" and related terms to the investment opportunity. Talk to trusted friends or advisers who have no relationship with your online contact.

For more information on investment scams, check out the Colorado Division of Securities Smart Investor Checklist and visit the Division's Protect Your Investments microsite or our main website.

If you or someone you know has become the victim of investment fraud, report it to the Division at 303-894-2320 or [email protected].