$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Social media scams/Reddit
Reddit investment tip scam
Scammers infiltrate investment subreddits with fake success stories and coordinated posts promoting fraudulent trading platforms or pump-and-dump stocks.
“social media scam”
↑ 470%Key indicators
Usually targetsSocial media users
Often hitsEducators and students
Common regionUnited States
Last updated2026-04-04
Estimated impact
$600
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Annual reports95,000
Scam breakdown
1
Scammers create multiple Reddit accounts and post convincing due diligence or success stories in popular investing subreddits
2
Coordinated posts create artificial buzz around a specific asset or platform, building trust through fake community consensus
3
Users who invest lose money when the asset crashes or the platform turns out to be fraudulent
What to do first
Verify investment advice from Reddit through independent financial research and regulated sources
Related terms
Reddit pump and dumpsubreddit investment fraudfake DD post scamSocial media scamsRedditSurgingSocial media usersYoung adultsCrypto investorsEducators and studentsInvestors and tradersUnited StatesUnited KingdomCanadaReddit pump and dumpsubreddit investment fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Paul, 35, a social media users, encountered what appeared to be a legitimate social media scams situation while using Reddit. Scammers create multiple Reddit accounts and post convincing due diligence or success stories in popular investing subreddits
Step 2
What happened next was calculated: Coordinated posts create artificial buzz around a specific asset or platform, building trust through fake community consensus
Step 3
The pressure escalated quickly: Users who invest lose money when the asset crashes or the platform turns out to be fraudulent
The outcome
Paul realized something was wrong when new or low-karma accounts posting detailed investment due diligence promoting a single stock or platform. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify investment advice from Reddit through independent financial research and regulated sources Paul's experience shows why new or low-karma accounts posting detailed investment due diligence promoting a single stock or platform and multiple posts from different accounts all promoting the same obscure investment at the same time are the clearest early warning signs.
How to identify it
- New or low-karma accounts posting detailed investment due diligence promoting a single stock or platform
- Multiple posts from different accounts all promoting the same obscure investment at the same time
- Links to unregulated trading platforms that require deposits to access special features
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Verify investment advice from Reddit through independent financial research and regulated sources
- ✓Check the posting history and account age of users making investment recommendations
- ✓Report suspicious coordinated posts to subreddit moderators and Reddit admins
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The SEC has warned investors about social media-driven market manipulation, noting that coordinated online campaigns can constitute securities fraud
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Verify investment advice from Reddit through independent financial research and regulated sources
- ✓Check the posting history and account age of users making investment recommendations
- ✓Report suspicious coordinated posts to subreddit moderators and Reddit admins
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The SEC has warned investors about social media-driven market manipulation, noting that coordinated online campaigns can constitute securities fraud
OpenScam research
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Social media users, Young adults, Crypto investors
Geographic concentration
United States, United Kingdom, Canada
Primary channel
Reddit — Social media scams
Why this group is vulnerable
Social media users are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The SEC has warned investors about social media-driven market manipulation, noting that coordinated online campaigns can constitute securities fraud
Source notes
- OpenScam research
Frequently asked questions
Common questions about reddit investment tip scam
How does the reddit investment tip scam work?+
Scammers create multiple Reddit accounts and post convincing due diligence or success stories in popular investing subreddits Coordinated posts create artificial buzz around a specific asset or platform, building trust through fake community consensus Users who invest lose money when the asset crashes or the platform turns out to be fraudulent
What are the warning signs of reddit investment tip scam?+
New or low-karma accounts posting detailed investment due diligence promoting a single stock or platform Multiple posts from different accounts all promoting the same obscure investment at the same time Links to unregulated trading platforms that require deposits to access special features
What should I do if I encounter reddit investment tip scam?+
Verify investment advice from Reddit through independent financial research and regulated sources Check the posting history and account age of users making investment recommendations Report suspicious coordinated posts to subreddit moderators and Reddit admins
Who is most at risk for reddit investment tip scam?+
This scam primarily targets Social media users, Young adults, Crypto investors. It is most commonly reported in United States, United Kingdom, Canada and typically appears on Reddit.
Is reddit investment tip scam getting worse?+
Reddit investment tip scam is currently surging — reports are increasing rapidly. It has been reported across US, UK, CA. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.