How to know if an investment platform is fake (red flags checklist)
Scammers build investment platforms that look professional, show fake profits, and promise fast withdrawals—until you try to cash out. Then they demand “fees,” “taxes,” or “verification payments” and keep delaying. This checklist helps you spot fake platforms early, verify what’s real, and avoid losing money.
Quick rule
If a platform makes it easy to deposit but hard to withdraw, treat it as a scam until proven otherwise.
Red flags checklist (the fastest way to spot a fake platform)
- Guaranteed profits: “Daily profit,” “risk-free,” “100% guaranteed return,” or fixed high returns.
- Pressure tactics: “Deposit now,” “limited slot,” “VIP window closing,” or constant calls/messages.
- Withdrawal blocked: You must pay a fee/tax/insurance to withdraw your own funds.
- “Account manager” push: Someone insists they control your trades or asks you to install remote access.
- Only crypto deposits: They refuse bank/credit card payments and ask for USDT/BTC/ETH.
- Unclear company info: No real office address, no registration number, or fake “about us” page.
- Fake licenses: Claims regulation but doesn’t appear on the regulator’s official register.
- New/hidden domain: Recently created domain or privacy-hidden ownership (not always bad, but adds risk).
- Bad reviews pattern: Many identical 5-star reviews, or many reports of withdrawal issues.
- Weird contact methods: Support only via Telegram/WhatsApp, no ticket system, no verifiable company email.
Step 1: Verify the company is real
A legitimate platform can be verified. Check for:
- Legal company name (not just a brand name)
- Registration number and country of registration
- Physical address that matches public records
- Support email domain (example: support@company.com, not Gmail/Yahoo)
Step 2: Verify any “license” claim
Scammers often paste a regulator logo (FCA, SEC, ASIC, CySEC, etc.) without being registered. Don’t trust screenshots. Search the regulator’s official register using the company’s legal name and registration number.
If the platform says “regulated,” but the legal name cannot be found on the official register, that is a major red flag.
Step 3: Check the domain and website signals
- Domain age: Very new domains are high-risk (many scams are newly created).
- Copied content: “About us” text copied from other sites, stock photos, fake team members.
- No clear terms: Missing Terms of Service, Refund Policy, Withdrawal Policy, or Risk Disclosure.
- Fake live chat: Chat pushes you to deposit instead of answering questions clearly.
Step 4: Test withdrawals before you deposit more
If you already deposited, do this before adding money:
- Request a small withdrawal immediately.
- If they delay or ask for a “release fee,” stop depositing.
- Save all screenshots, chats, wallet addresses, and transaction IDs.
Step 5: Understand the most common scam trick
The most common trick is a “withdrawal fee” or “tax payment” required before release. Real platforms deduct fees from your balance or show them clearly—legitimate services do not require you to send extra money to withdraw your own money.
What to do if you already sent money
- Stop paying: Do not send “verification fees,” “tax fees,” or “unlock fees.”
- Document everything: receipts, bank transfer details, wallet addresses, TXIDs, emails, chats, and screenshots.
- Contact your bank/card immediately: Ask about chargebacks or payment disputes (time matters).
- Report the platform: report to your local cybercrime unit and the platform host/social network used to advertise.
- Secure your accounts: change passwords, enable 2FA, and scan your device for malware if you installed anything.
Extra warning: “recovery agent” scams
After you get scammed, you may be contacted by someone claiming they can recover your money—for a fee. This is often a second scam. Be cautious of anyone demanding upfront payment, remote access, or private keys/seed phrases.
Safe checklist you can copy
- I verified the legal company name and registration details.
- I verified the license on the regulator’s official register.
- I read the withdrawal policy and tested a small withdrawal.
- I avoided platforms that promise guaranteed returns.
- I refused remote access tools and “account manager” control.