CFTC's Customer Advisory Suggests Adding "Avoiding Fraud" to 2025 New Year Resolutions

The U.S. Commodity Futures Trading Commission (CFTC) has issued a new customer advisory titled “Avoiding Fraud May be Your Best Resolution”, suggesting people add “spotting scams” to their list of New Year’s resolutions.

The advisory highlights that relationship investment scams have robbed billions of dollars from Americans. It suggests that being cautious about whom you trust online, staying informed, and learning about trading risks are commendable resolutions for 2025.

The advisory also notes that online investment scams mainly target three groups: those eager to learn to trade, those seeking to earn more, and those looking for love or friendship. Fraudsters exploit these needs to lure victims.

“Anyone can be vulnerable to fraud. Fraudsters rely on trust or fear to motivate their victims into sending money. Fraudsters build trust by posing as experts, ‘winning’ traders, or by engaging in relationships. So, the best way to avoid fraud is to limit your exposure and not engage with online requests for money or information,” it states.

The CFTC offers three New Year's resolutions to help avoid scams in the coming year:

Be more cautious about who you trust online

Fraudsters use fake social media profiles, videos, group chats, testimonials, and fake trading websites that manipulate market data and display growing balances. The fake platforms may even pay small-dollar withdrawals to build trust. Limit your exposure to fraud by limiting who can see your information on social media.

Invest in learning from reliable sources

All trading involves risk. Offers that promise easy, no-risk returns are scams. Study markets and product-specific risks, beginning with well-known public and industry sources.

Protect yourself and others

Verify the registration status of companies or financial professionals offering investment advice before you trade.