TDCI Warns Investors About “Other People’s Money” Investment Scams

Tennessee's Securities Division cautions investors about online scams involving trading with "other people's money.

The Tennessee Department of Commerce & Insurance (“TDCI”) Securities Division is raising awareness about a growing online investment scam targeting victims with promises of big returns by trading “other people’s money.” Assistant Commissioner for Securities Elizabeth Bowling urges investors to be extremely cautious when approached with unsolicited investment opportunities from strangers and to contact TDCI’s team with any questions.

In these scams, which frequently occur online through social media or messaging apps, scammers offer the opportunity to make money by trading stocks, foreign currencies, or cryptocurrencies using a supposed “proprietary trading platform” with special algorithms. In reality, no such platform exists, and the scammer requests an up-front fee and personal information from the investor, potentially leading to identity theft or further loss of funds.

Red flags of these scams include unsolicited messages about investment opportunities, offers to trade using other people’s money for an up-front fee, requests for personal and financial information, and demands for payment via cryptocurrency or mobile cash transfer apps. To protect themselves, investors should avoid strategies they do not understand, refrain from responding to unsolicited messages, and verify the registration of anyone offering investment opportunities with their state securities regulator. In Tennessee, investors can contact TDCI’s Securities Division at or 800-863-9117 for more information or to report suspected securities fraud.

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