New research published this month by the FINRA Investor Education Foundation and RAND finds that when Americans are asked to name fraud schemes, only 17 percent can name the category behind investment scams: the frauds that lure victims with promises of quick wealth. Half can name identity theft. The scam that empties retirement accounts is the one that is not on people's minds, and awareness turns out to be connected to whether people lose money.
The study, based on a nationally representative survey analyzed by RAND researchers, asked adults to list fraud schemes and tactics in their own words. Identity-based fraud came to mind for 50 percent of respondents. Every other category lagged far behind: threat-based scams at 20 percent, opportunity-based scams, the quick-wealth category where investment fraud, Ponzi schemes, and "guaranteed return" pitches live, at just 17 percent, and imposter scams at 14 percent.
The scale of the problem is not small. The brief reports that consumers filed 3 million fraud complaints with the Federal Trade Commission in 2025, reflecting $15.9 billion in reported losses, and that actual losses are estimated near $200 billion once unreported fraud is counted. In the survey itself, 72 percent of respondents said they had been targeted by a fraudster; among those who went on to interact with one, roughly a third lost money.
Read the full research brief at finrafoundation.org.
Identity theft is a real problem, but it is also a heavily defended one: banks flag it, credit bureaus monitor it, and half the country is watching for it. Opportunity-based fraud works differently. It does not steal your information; it persuades you to hand over your money willingly, through an exciting investment, a can't-miss opportunity, a trusted figure in your community, or a return that sounds safe and generous at the same time. The defense against it is recognition, and the research shows recognition is exactly what most people lack.
The study found one more thing worth sitting with: respondents who could name threat-based scams were less likely to report having lost money. The researchers are careful about cause and effect, but the direction is consistent with common sense. Knowing what a scam looks like before it arrives is protective. That is the entire reason investor education content exists, including this page.
In securities practice, opportunity-based fraud has recognizable shapes:
The guaranteed return. Any pitch combining "safe" with a return meaningfully above what banks pay. Legitimate investments do not guarantee outcomes.
The affinity pitch. An opportunity spreading through a church, an immigrant community, a professional circle, or a family network, where trust in the messenger substitutes for scrutiny of the investment. How Ponzi and affinity schemes are built, and what recovery looks like
The exclusive opportunity. Pressure to act quickly, secrecy, and the suggestion that you were specially chosen. Real investments survive a night's sleep and a second opinion.
The trusted professional. Sometimes the pitch comes from a licensed broker or adviser, selling something away from their firm or something the firm should never have approved. That changes the recovery path entirely, because a registered firm stands behind the conduct.
Awareness protects the money you still have. For money already lost, the path depends on who was involved. Where a registered broker, investment adviser, or brokerage firm sold, recommended, or facilitated the investment, losses may be recoverable in arbitration, and the firm's supervisory failures are often the strongest part of the claim. Where an elderly family member was the target, additional protections apply. Elder financial exploitation, in depth
Reporting the fraud to the FTC, the SEC, or FINRA protects others and creates a record, but a regulatory report does not by itself return your money. The recovery question is separate, and it is answerable in a single consultation.
Opportunity-based fraud lures victims with exciting promises: quick wealth, unexpected prizes, or exclusive investment opportunities. It is the category where investment scams, Ponzi schemes, and guaranteed-return pitches live, and new FINRA Foundation and RAND research finds only 17 percent of Americans name it when asked to list fraud types.
According to the research brief, consumers reported $15.9 billion in fraud losses to the Federal Trade Commission in 2025 across 3 million complaints, and actual losses are estimated near $200 billion once unreported fraud is counted, because most victims never report.
The research found that respondents who could name threat-based scams were less likely to report losing money to fraud, and that people with higher financial literacy could name more fraud types across the board. The researchers note the data cannot prove cause and effect, but the pattern supports what investor education assumes: recognizing a scam before engaging is protective.
It depends on who was involved. Where a registered broker, adviser, or brokerage firm sold or facilitated the investment, losses may be recoverable through arbitration, often based on the firm's own supervisory failures. A free consultation can answer the recovery question for your specific situation. Deadlines apply, so prompt review matters.
If you or a family member put money into an investment that turned out to be something else, the recovery question is answerable. The consultation is free, confidential, and available in English or Spanish. No recovery, no fee.
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