Investor.gov (SEC Office of Investor Education and Advocacy)
Don't Fall for an Investment Scam – Investor Alert
Investor.gov says not to rely solely on testimonials and that depictions of skyrocketing investment accounts are often fake.
Reviews and testimonials shape trust in an online platform, which is also why they are faked. This page summarises what Investor.gov and the US Federal Trade Commission (FTC) say about testimonials and checking an opportunity. It does not rate any broker, review site or reviewer.
What Investor.gov Says About Testimonials
In an investor alert dated 9 October 2019, Investor.gov states: "Never rely solely on testimonials in making an investment decision." The alert also says: "Also, depictions of skyrocketing investment accounts often are fake." Praise, screenshots and balance displays are therefore not proof, and a page made only of them is a warning sign in itself.
False Urgency
The same alert describes a pressure tactic that often accompanies glowing reviews: "Con artists often claim an investment opportunity will be gone tomorrow." Urgency leaves less time to check, so a countdown or a limited offer is a reason to pause. For more on pressure tactics, see binary options scam warning signs.
Checking What Others Say
The FTC, in a consumer alert dated 28 May 2025, advises a simple check: "See what others are saying." It also states: "There are no guaranteed returns — and no investments without risks." Reading independent sources, including complaints, is more useful than reading a firm's own testimonials. Keep in mind that reviews anywhere can be planted, so compare several unrelated sources and give most weight to official regulator information.
What To Do Next
Check authorisation with the regulator, not with the reviews; see how to check whether a broker is regulated. Our own approach to reviews is in how we review brokers. If you suspect fraud, read how to report a binary options scam.
Frequently Asked Questions
Should I trust testimonials on a trading platform's site?
Investor.gov states: "Never rely solely on testimonials in making an investment decision."
Are screenshots of large accounts reliable?
Investor.gov says: "Also, depictions of skyrocketing investment accounts often are fake."
What does the FTC suggest as a quick check?
The FTC says: "See what others are saying." It also notes there are no guaranteed returns.
Does this page address whether an individual could face liability?
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
Sources and Official References
- Investor.gov: Don't Fall for an Investment Scam – Investor Alert (9 October 2019)
- FTC: Can you spot an investment scam on social media? (28 May 2025)
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.