Before transferring money, verify three separate things: the seller’s identity and authorization, the investment’s issuer and terms, and the destination of your payment. A real registration record or regulatory filing is not proof that the person contacting you is genuine or that the offer is safe. Use the checklist below to investigate independently; it is a U.S.-focused fraud-prevention guide, not a recommendation to buy or sell an investment.
How do I verify an investment offer before sending money?
- Pause before paying. Do not let a deadline, “once-in-a-lifetime” claim, supposed inside information, or assertion that everyone is buying rush you. The SEC advises taking the time needed to investigate before sending money or signing an agreement. Ask for the offer and its terms in writing. SEC investor alert (2014).
- Check the seller using the record for their role. Search the individual and firm, where relevant, in the appropriate official database. Then read disclosures and disciplinary records in context; registration is not a quality rating.
- Authenticate the contact independently. Find the firm’s official contact details yourself and ask whether the person and offer are genuine. Do not rely on a phone number, website, email, or document supplied by the person pitching you.
- Investigate the investment and its documents. Identify the issuer, what your money will fund, what rights you receive, the risks and fees, how you can exit, and the entity receiving payment. Compare claims with independent records and filings.
- Verify the payment instructions. Check that the recipient and account name match the verified firm and written offering documents. Stop to verify any mismatch, including a request to pay an individual, unrelated company, or digital-asset wallet.
- If checks fail, do not send money or personal information. Preserve the pitch, messages, documents, account details, and any transaction records. Report a false SEC-registration claim to the SEC; for online fraud, the SEC/FBI alert also points to the FBI Internet Crime Complaint Center.
How can I check if an investment company is legitimate?
Start with the company’s role in the transaction and the kind of investment being offered. Investor.gov’s Ask and Check directory helps route investors to the relevant records. The right search may depend on the product and the seller’s role, and more than one record may be relevant.
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| What you are checking | Official record or source | What to review |
|---|---|---|
| Investment adviser or advisory firm | Investment Adviser Public Disclosure (IAPD) | SEC- and state-registered advisers and individuals; status, business practices, fees, conflicts, disciplinary history, qualifications, employment history, and the firm’s Form ADV. |
| Broker or brokerage firm | FINRA BrokerCheck | Current and former FINRA-registered brokers and firms, including background, exams, employment, customer disputes, registrations, and disciplinary events. |
| Company or security | SEC EDGAR | Company filings, registration statements, prospectuses, and periodic reports, including financial statements. A filing is not SEC endorsement or proof that the seller is registered. |
| Futures or commodities | NFA BASIC | Registration, membership, and futures-related disciplinary information. Investor.gov also links to CFTC disciplinary-history resources and SmartCheck. |
| Municipal securities | EMMA | Official statements and continuing disclosures for municipal securities. |
| State-level information | State securities regulators | Additional state records or information that may apply to the seller or offer. |
Where both a person and a firm are involved, check both. A clean search result—or a registration match—does not establish that the offer is legitimate, guarantee performance, or amount to a recommendation.
How do I know if an investment adviser is registered?
Search the adviser’s name and firm in IAPD, then open the records and review the firm’s Form ADV and the individual’s available record. Confirm that the identity, firm affiliation, and status correspond to the person who contacted you. IAPD covers SEC- and state-registered investment adviser firms and individuals; it is not a universal register for every person who may call an investment an “adviser.” Check the database that fits the role and product, and consult state securities regulators when appropriate.
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Be especially careful with claims about an exempt reporting adviser (ERA). In its Aug. 27, 2026 alert, the SEC states that “ERAs are not registered with the SEC” and that an ERA “legally cannot provide investment advice directly to you, as an individual.” The SEC also warns that scammers have used ERA filings to create an appearance of legitimacy. A filing is not a registration certificate or endorsement. See the SEC alert on ERA filings.
How do I confirm the person contacting me is really with the firm?
Registration databases can show that a real professional or firm exists, but they do not authenticate an unsolicited caller, emailer, social-media account, or website. Fraudsters may copy a real firm’s name, address, registration number, logo, a professional’s photograph, or public report; they may also use lookalike websites or spoof caller ID.
- Open the firm’s record through the relevant official database rather than using a link in the pitch.
- Get contact information from that independently located record or other official source. The SEC/FBI alert describes using a firm’s Form CRS, obtained independently, as one way to find contact information.
- Contact the firm using that information and ask whether the specific person, communication channel, and investment offer are theirs.
- Do not treat a matching name, document, or registration number as sufficient if the firm cannot confirm the contact and offer.
The SEC and FBI describe these impersonation tactics in their 2021 joint investor alert.
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Ask for complete written materials and work through the substance of the deal, not just the promoter’s credentials. Establish who issues the investment and who is soliciting you. Check whether the issuer and management can be verified through independent information, and compare material claims with available filings. Review:
- What the investment is and what legal or economic rights you receive.
- How the issuer will use the money and which entity will receive it.
- The material risks, fees, restrictions, and conditions—not just projected returns.
- How and when you may sell, redeem, or otherwise exit, and what limits apply.
- Whether written disclosures are complete and consistent with the pitch.
An offer may be unregistered and still be legitimate: some private offerings are not registered with the SEC, though they generally lack some disclosure protections that apply to registered offerings. Conversely, finding an SEC filing does not mean the SEC approved the investment or verified the person contacting you. Missing documents, sloppy materials, vague use of proceeds, unverifiable management histories, and a company that cannot be checked in state records are reasons to stop and investigate further. Investor.gov explains the distinction between private investments and registered offerings.
Does an SEC filing mean an investment is approved?
No. The SEC says that the existence of a filing does not establish that a person or firm is SEC-registered, and a filing is not government approval or endorsement of an investment. Check the relevant seller record separately from company or security filings. The same distinction matters for ERA filings: a filing can be used to create a misleading impression of legitimacy, but it does not make the filer SEC-registered.
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How do I verify where my money is going?
Compare the payment instructions with the verified firm and the written offering documents. Confirm the recipient’s legal name and account details through an independently obtained firm contact before transferring funds. The SEC/FBI alert flags requests to pay by credit card or digital-asset wallet, wires or checks payable to a person or a different firm, suspicious addresses, or payments described as unrelated to the investment. A request to send money abroad can make recovery difficult if the offer is a scam. Treat any discrepancy as a reason not to pay until independently resolved.
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Which warning signs mean I should stop and investigate?
- Guaranteed high returns with little or no risk. The SEC Office of Investor Education and Assistance says, “there’s no such thing as high guaranteed investment returns, and every investment involves risk.” See its 2026 handout, Protect Your Money: How to Avoid Investment Scams.
- An unsolicited pitch that cannot be checked against independent, current information.
- Pressure to act immediately, claims that everyone is buying, secrecy, or supposed inside information.
- Refusal to provide written materials or documents with obvious errors.
- A seller whose identity, affiliation, registration, or history cannot be verified—or a purported ERA offering investment advice directly to an individual.
- Payment to a personal account, unrelated company, digital wallet, suspicious address, or foreign destination.
A warning sign is a reason to pause and investigate, not by itself proof that a particular offer is fraudulent. The SEC and FBI discuss warning signs in their joint alert; the SEC’s 2026 handout includes examples involving social media and messaging.
What should I do if the checks fail?
If someone falsely claims SEC registration, the SEC says not to trade, give money, transfer crypto assets, or share personal information with that person or firm. Report the misrepresentation to the SEC using its Tips, Complaints, and Referrals system. For online fraud, the SEC/FBI alert also identifies the FBI Internet Crime Complaint Center. Keep copies of the pitch, messages, documents, account details, and transaction records to support a report. If you are outside the United States, these databases and rules are U.S.-specific; contact your own country’s securities regulator and use its official registers and reporting channels.
How should I compare multiple offers or intermediaries?
Use the same checks for each option so a polished pitch does not distract from missing evidence.
| Check | Question to ask |
|---|---|
| Role and authorization | Does the official record fit this person’s role and the product being offered? |
| Identity match | Does the independently contacted firm confirm the person and offer? |
| History | What do disciplinary, complaint, and employment records show, and what is their context? |
| Written terms | Are the issuer, risks, fees, rights, and use of proceeds clear and verifiable? |
| Payment | Does the destination and account name match the verified firm and documents? |
| Review time | Can you investigate independently without pressure to act immediately? |
A registration match is a threshold fact to verify, not a guarantee or recommendation.
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