Red flags
What regulators say to watch for.
Warning signs from the FTC, the SEC’s investor office and the CFTC, grouped by the kind of program. Want to check a specific pitch? Use the red flag checker.
Coaching, courses and done-for-you businesses
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Guaranteed income or a proven system
The FTC says a business offer or coaching program that promises guaranteed income, large returns or a 'proven system' is likely a scam.
Source: FTC Consumer Advice, When a Business Offer or Coaching Program Is a Scam
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Done-for-you and turnkey promises
The FTC says profitable turnkey businesses are rare, at best, and warns against sellers who say their experts, coaches or mentors will take care of everything for you.
Source: FTC Consumer Advice, When a Business Offer or Coaching Program Is a Scam
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The upsell
If a promoter or coach asks you to pay even more to help your business succeed, the FTC's advice is to stop and talk it over with someone you trust.
Source: FTC Consumer Advice, When a Business Offer or Coaching Program Is a Scam
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Testimonials and reviews
Success stories can be fake or misleading, and positive online reviews may come from made-up profiles.
Source: FTC Consumer Advice, When a Business Offer or Coaching Program Is a Scam
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Coaching for ecommerce, crypto, forex
In April 2026, the FTC warned about training programs that claim they'll teach you to make money with ecommerce businesses, financial markets like crypto and forex, or real estate.
Source: FTC Consumer Alert, How to spot and avoid business coaching scams (April 2026)
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AI-powered online store pitches
The FTC's September 2024 Operation AI Comply sweep included cases against companies claiming they could use AI to help people make money through online storefronts.
Source: FTC press release, FTC Announces Crackdown on Deceptive AI Claims and Schemes
MLMs and pyramid schemes
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Recruiting is the real money
If promoters stress that recruiting new distributors is the real way to make money, the FTC says that's a pyramid scheme warning sign.
Source: FTC Consumer Advice, Multi-Level Marketing Businesses and Pyramid Schemes
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MLM or pyramid scheme?
The FTC says pyramid scheme income is based mostly on how many people you recruit, not how much product you sell. In a legitimate MLM, you should be able to make money just by selling the product.
Source: FTC Consumer Advice, Multi-Level Marketing Businesses and Pyramid Schemes
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Most MLM participants earn little
According to the FTC, most people who join legitimate MLMs make little or no money, and some lose money.
Source: FTC Consumer Advice, Multi-Level Marketing Businesses and Pyramid Schemes
Work-from-home jobs
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Paying to get a job
Honest employers never ask you to pay to get a job. The FTC says anyone who does is a scammer.
Source: FTC Consumer Advice, Job Scams
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Starter kits and certifications
Work-from-home job scams often leave people paying for starter kits, training or certifications that turn out to be useless.
Source: FTC Consumer Advice, Job Scams
Trading, forex and crypto
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Pressure to buy a trading course
The SEC's investor education office warns that trading seminar promoters may use high-pressure tactics, like saying only a few spots are left, to get you to buy trading products and classes.
Source: Investor.gov (SEC), Investor Alert: Investment Seminars, Trading Seminar Scams
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Former students' trading wins
The SEC's investor office says promoters may show false or misleading trading records from 'former students,' and that past trading success doesn't predict future success.
Source: Investor.gov (SEC), Investor Alert: Investment Seminars, Trading Seminar Scams
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Influencers and celebrity endorsements
The SEC's investor office says not to let testimonials or celebrity endorsements drive an investment decision, and notes fraudsters sometimes pay actors, influencers and celebrities to tout investments on social media.
Source: Investor.gov (SEC), Social Media and Investment Fraud, Investor Alert
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Secret signals, bots and prop firm offers
The CFTC says forex frauds typically center on an unfamiliar trading platform, someone selling secret trading signals or strategies, software that trades for you, or a chance to trade a prop firm's money and share profits.
Source: CFTC, Forex Frauds
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Most retail forex traders lose
Based on quarterly data from U.S. registered forex dealers, the CFTC says about two out of three retail forex traders end each quarter losing money.
Source: CFTC, Forex Frauds
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AI trading bot hype
In January 2024, the CFTC warned that scammers use AI hype to push trading bots and trade signal algorithms, and that claims of high or guaranteed returns are red flags of fraud.