When an offer like “guaranteed principal and 10% a month” arrives first by messenger or social media, start with suspicion. Investor.gov, the US Securities and Exchange Commission’s investor education site, lists the red flags of investment fraud: high returns with little or no risk, pressure to act now, fear of missing out, building trust through unsolicited contact, a common bond, impersonating professionals, fake testimonials or credentials, celebrity endorsements, and suspicious payment methods. It says “there’s no such thing as high guaranteed investment returns” and to check that the person offering the investment is registered. This sets out Investor.gov’s “Protect Your Money: How to Avoid Investment Scams”.
1. There’s no such thing as high guaranteed returns — high returns with little risk is the first flag.
2. Act now, don’t miss out, and friendliness from someone who contacted you first are flags too.
3. Asked to pay by gift card, crypto, P2P app or to a person’s account? Stop — and check registration first.
Nine red flags — Investor.gov
| Flag | What Investor.gov says | Worth noting (ours) |
|---|---|---|
| High returns, little risk | No such thing as high guaranteed returns | “Guaranteed principal + high return” together lands here |
| Pressure to act now | Fake deadlines, claims of insider information | — |
| Fear of missing out | “Can’t miss” opportunities | — |
| Building trust | People who reach out unprompted on social media or text | Same shape as Korean stock-tip chat rooms (our gloss) |
| Common bond | Shared faith, ethnicity or group ties don’t make an offer real | — |
| Impersonation | Copying a real firm’s logo or a real person’s name | — |
| Fake testimonials or credentials | Paid reviews, inflated qualifications | — |
| Celebrity endorsements | A famous name doesn’t make an investment genuine | — |
| Suspicious payment methods | Gift cards, crypto, P2P apps, checks or wires to individuals, unexpected companies or P.O. boxes | — |
How to check — Investor.gov
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Do | Check the person is currently licensed or registered | In the US, the Investor.gov search tool |
| Do | Find their contact details on their Form CRS and confirm it’s really them | To weed out impostors |
| Do | Research the investment and the person before investing | — |
| Don’t | Invest on advice from someone who contacted you unsolicited | — |
This page is US-specific. In Korea, check the Financial Supervisory Service’s guidance on confirming whether a firm is licensed — we didn’t read it this time (our pointer).
Matching common Korean pitches — our gloss
- “Principal guaranteed, a fixed % a month” → high returns, little risk.
- “Only open until today” → pressure to act now.
- Invited first into an open chat room or by text → building trust.
- Ads using a big brokerage’s or a celebrity’s name → impersonation or celebrity endorsement.
- “Pay into a personal account” or “pay in crypto” → suspicious payment methods.
These match the source’s flags to common Korean phrasing — our gloss. For identity theft, see identity theft check; US credit freezes are in credit freeze.
Checklist
- ☐ “Guaranteed” plus “high return”: stop
- ☐ Don’t rush for “today only”
- ☐ Don’t decide on advice from someone who contacted you first
- ☐ Check the person and firm are registered, through official routes
- ☐ Asked for gift cards, crypto or a personal account: stop
Questions that remain
But I’ve already been paid returns a few times.
This page doesn’t cover that case, but it lists building trust itself as a red flag.
Where do I report it in Korea?
We didn’t read Korean agency guidance this time. If you’ve already sent money, tell your bank and the police straight away (our pointer).
Sources
- US SEC Investor.gov — Protect Your Money: How to Avoid Investment Scams — source (no published or updated date shown; checked 19 October 2026). 9 red flags, 4 ways to check.
- Not read. Korean FSS guidance on illegal finance and reporting.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where else to check
- Your bank — straight away if you’ve sent money.
Written on 19 October 2026. The content is from the source; the glosses are ours.
