1. Guaranteed returns, risk-free profits
All legal investments carry risk. Any claims of 'principal guaranteed, risk-free, zero-risk high returns' violate basic financial common sense.
2. Unreasonably high monthly returns
Monthly returns of 10% or 20% imply annualized rates several times the market index. No legitimate asset can sustain this long term. High return promises are a common feature of Ponzi scams.
3. You are asked to join LINE / Telegram groups for 'teacher-led trading'
Legitimate brokers and investment trusts do not use private message groups to guide your trades. The 'assistants, analysts, classmates' in the group are often the same people acting, creating a bandwagon effect.
4. Payments go to personal or nominee accounts, not regulated brokers
Funds for legal investments go through regulated broker/bank channels, not to personal accounts or unknown company accounts. If the payee is an individual name, alarm bells should ring.
5. The operator or platform lacks Financial Supervisory Commission approval
In Taiwan, operating securities, futures, investment advisory, or banking businesses requires FSC approval. Soliciting investments without a license is illegal.
6. Withdrawal requires upfront payment of 'deposit/tax/fee/unfreeze fee'
This is the most typical 'block withdrawal' tactic — your balance shows on the screen but you can't get it out, and you're asked to pay more to 'unfreeze'. Once this happens, your principal is almost certainly lost. Do not pay any more.
7. Fake celebrities, fake news, fake endorsements
Using photos of financial celebrities or entrepreneurs, or fabricating seemingly real news reports claiming that someone recommends an 'AI automatic money-making system'. The celebrity themselves is usually completely unaware.
8. Using 'limited time, limited quota' to pressure you into quick decisions
Creating a sense of urgency to prevent you from verifying and cooling down. A truly good opportunity will not force you to remit money within five minutes.
9. Initial small profits and successful withdrawals
The 'feed' stage of 'feed, trap, kill': let you taste small gains and successfully withdraw small amounts to build trust, then lure you into investing large sums before a final harvest.
10. Refusal of video calls, refusal to provide company registration details
Those who are afraid of being checked usually cannot withstand scrutiny. If the counterparty evades providing a company tax ID, registered address, responsible person, etc., treat as high risk.
❓ FAQ
If only one warning sign matches, is it definitely fraud?
Not necessarily, but if any of 'guaranteed returns', 'withdrawal requires upfront payment', or 'payments to personal accounts' appears, it is almost certainly problematic. Stop and verify immediately. Multiple signs simultaneously indicate higher risk.
I actually made money and withdrew at the beginning — is it still fraud?
Yes. Initial small profits and successful withdrawals are standard 'feed, trap, kill' tactics, aimed at building trust to lure you into investing larger amounts before a final harvest.