CCompound

Začínáme s investováním

How to spot an investment scam and not get caught

5 min readCompound

Key takeaways

Investment scams are becoming increasingly sophisticated — but the warning signs remain the same.

The most common warning signs

These things should stop you immediately:

Warning: Fraudsters today impersonate reputable banks, celebrities, or regulated companies. Always verify through the official website of the entity directly — not through a link in a message.

How to verify legitimacy

You can find a regulated broker or investment company in the CNB register at cnb.cz or in the ESMA database. If the entity is not in the register, avoid it regardless of how convincing it sounds.

What to do if you encounter a suspicious offer

Do not respond, do not send money or personal information. You can report the suspicious entity to the CNB. If you have already sent money, contact your bank and the police immediately.

FAQ

How quickly can I verify whether a broker is regulated?

It only takes a few minutes. Go to cnb.cz under "Lists of regulated entities" or to the ESMA website and search for the company name. If it isn't there, or the name is slightly different, that is a warning sign.

Can I fall victim to a scam even through a large, seemingly trustworthy company?

Yes — fraudsters copy logos, names, and websites of real companies. Always access companies through an address you type yourself, or through a link from the regulator's register. Never click a link from an unsolicited message.

What is a Ponzi scheme and how do I recognize one?

A Ponzi scheme pays returns to earlier investors using money from new investors — not from real profits. It works as long as new people keep joining. Then it collapses and everyone loses their money. Key sign: unusually high and consistent returns with no clear source of profit.

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