[Checklist for Identifying Investment Scams and Risky Products]
To "increase your assets through investment," you need "protection skills" before "growth skills."
Scams and dangerous investment products are becoming increasingly sophisticated every year, and they are designed to target those with the least knowledge first.
Here, we introduce a "Checklist for Identifying Investment Scams and Risky Products" that anyone can use.
🚨 [Checklist for Identifying Investment Scams and Risky Products]
✅ 1. [Returns] "Guaranteed annual return of X%" or "Absolutely no losses" is 100% false
Checkpoints:
Phrases such as "principal guaranteed," "annual interest rate of 10% or more," or "guaranteed profit" are used.
They emphasize that it is "safer and higher yielding than banks."
🔎 Reason:
Higher returns always come with higher risks.
Only government bonds and deposit insurance can be "guaranteed."
"High returns with zero risk" does not exist in this world.
→ Principle:
Be suspicious of any investment that promises returns.
✅ 2. [Seller] Be wary of "only available from this person" or "referral-based" schemes
Checkpoints:
"Limited offering," "for a limited time only," "only available through a referrer."
"Companies not registered with the Financial Services Agency."
🔎 Reason:
Scam products spread in "closed communities" (SNS, LINE groups, etc.).
Legitimate financial products can be purchased by anyone through official websites or securities companies.
→ Principle:
Take a step back if you hear words like "limited," "referral," or "secret."
✅ 3. [Transparency] Unclear explanations and incomprehensible mechanisms are unacceptable
Checkpoints:
The mechanism is a black box, such as "AI automatically manages it" or "compounding using cryptocurrency."
There is no specific explanation of "where and how the money is invested."
🔎 Reason:
Things that cannot be explained = things that people won't believe if explained.
The golden rule of investing is to only invest in what you understand.
→ Principle:
Do not invest a single yen in anything you don't understand. ✅ 4. [Pressure and Solicitation] "Rushing, inciting, and using group pressure" are danger signs.
Checkpoints:
"You won't make it if you don't apply now."
"Celebrities are doing it," "Everyone is starting."
Using "free seminars" and "networking events" to emotionally manipulate.
🔎 Reason:
A common tactic of scammers is to "force a decision without giving time to think."
Legitimate financial products provide an environment where you can calmly consider them at any time.
→ Principle:
For any investment that says "act now," always take a cooling-off period.
✅ 5. [Appeal to Authority] Don't trust celebrity endorsements, titles, or media appearances.
Checkpoints:
Advertisements such as "Former banker at XX," "Supervised by famous investor Mr. XX," "Featured on TV."
Celebrities and influencers are promoting it.
🔎 Reason:
Scammers use "authority and celebrities" to create a false sense of trust.
Real investors don't use "flashy advertising."
→ Principle:
The flashier the advertisement, the less trustworthy it is.
✅ 6. [Withdrawal Risk] "Unable to withdraw funds" and "Unable to contact" are terminal symptoms.
Checkpoints:
"Withdrawal requests remain pending."
"The person in charge suddenly disappeared," "The website disappeared."
🔎 Reason:
A typical "Ponzi scheme" (paying dividends to old investors with money from new investors).
It will inevitably collapse.
→ Principle:
Investments where "deposits are easy, but withdrawals are difficult" are definitely scams.
✅ 7. [License] Always check the Financial Services Agency registration and company information.
Checkpoints:
Does it have a financial instruments business operator registration number (e.g., XX Financial Bureau Director (Financial Instruments) No. △△)?
Does the operating company's address, representative, and phone number actually exist?
🔎 How to check:
👉 Financial Services Agency official website
"Registered Business List": https://www.fsa.go.jp/menkyo/menkyoj/kindex.htm
→ Principle:
No registration = Illegal business = Withdraw immediately. ✅ 8. [SNS-based Scams] 90% of investment offers via Instagram, X (formerly Twitter), and LINE are fake.
Checkpoints:
"I'll provide investment guidance via DM," "Guaranteed profits with automated trading tools"
Phrases like "Even beginners can earn 100,000 yen per month"
🔎 Reason:
SNS investment scams are increasing every year. The Financial Services Agency and the National Police Agency have already issued warnings.
Legitimate securities companies and investment trusts do not engage in DM solicitations whatsoever.
→ Principle:
The safest approach is to avoid any investment offers received via social media.
🧠 Finally: The decisive difference between real investments and scams
Item Real Investment Scam/Dangerous Product
Mechanism Transparent and understandable Opaque and inexplicable
Return Variable (no guarantee) Emphasizes "guaranteed profits"
Solicitation Method Self-judgment/Official channels Inducement via DM, phone calls, seminars
Registration Registered with the Financial Services Agency Unregistered or operating from overseas
Withdrawal Possible anytime Delayed or restricted
✅ Summary: 3 principles to follow to avoid scams
Never invest in anything you don't understand.
Immediately disengage if you see "guaranteed," "limited," or "urgent."
Always check for Financial Services Agency registration and withdrawal availability.
