rewrite this title Beware the 'Hi, how are you?' text. It's a scam – here's how it works

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Online investment scams in the US cost victims $3.5 billion.The median loss for the first half of 2025 reached $10,000.Protect yourself from these scams by knowing the warning signs.

Have you ever received a friendly “Hi, how are you?” greeting through a text or social media post from a person you don’t know? That could be someone making an innocent mistake, or it could be a cybercriminal looking to run an investment scam on you.

Investment scams are now the fifth most common type of fraud in the US, with more than 66,700 reports during the first half of 2025, according to broker comparison site Broker Chooser. Over that period, unsuspecting victims lost a total of $3.5 billion to such fraud. Scammers earned a whopping $939 million in cryptocurrency, a rise of $261 million from the same period in 2024.

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Savvy crooks who try to pull off this type of fraud know they can exploit people eager to make a quick buck. With that in mind, the median loss for these crimes reached $10,000 during the first half of this year, up from $9,300 for all of 2024. That’s the highest median amount among scams recorded by Broker Chooser and 376% higher than the second-highest median loss of $2,100 from business and job scams.

People in certain states seem especially susceptible to investment scams. For the first half of 2025, Nevada topped the list with 211 reports for every one million residents, resulting in a total loss of more than $40.4 million. In second place was Arizona with 202 reports per million residents and total losses of more than $95.1 million. Florida took third place with 185 reports per one million people and losses of more than $241 million.

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One tactic used by many scammers is known as “pig butchering.” Here, the criminal approaches someone through a social network or dating site and tries to foster a relationship over the course of several months. When the time feels right, the scammer convinces the target to invest in phony cryptocurrency by showing them imaginary gains. As the crook further reels in their catch, the person is asked to invest more money. In the end, the criminal runs away with the digital loot, and the victim is all the poorer for it.

Social media is the most popular platform for investment scams, accounting for 13,577 reported cases and total losses of $589.1 million over the first half of the year. That’s because scammers know that many people turn to social media for investment advice.

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Websites and apps are the second most popular way to run these scams, resulting in 6,007 reports and $266 million lost over the first six months of 2025. With the help of AI, criminals can create convincing apps and websites that can easily trick victims into falling for the scam.

Many scammers also use text messages to approach potential victims. A seemingly innocent greeting can easily turn into a friendly, ongoing conversation until the criminal senses the right time to pull off the scam.

To protect yourself from investment scams, Broker Chooser senior broker analyst Brandon Bovey offers the following six tips:

1. Be wary of responding to unsolicited messages

Tread carefully if you receive a “Hi, is this John?” or “Hi, is this Jennifer?” message. 

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That could be the start of a pig butchering campaign. Criminals often hunt for victims through texts, social media sites, and dating apps, pretending to have reached you by mistake. If you tell them that they have the wrong person, they’ll still try to keep the conversation going, hoping to gain your trust or friendship. The topic eventually turns to investing, and that’s when the scam takes off. 

If you receive a text or other message not intended for you, your best bet is to just ignore it.

2. Look out for people trying to manipulate your trust

Once a scammer has built a relationship with you, even an online one, watch out if they convey an interest in helping you make money. No random stranger is going to suddenly come into your life looking to help you earn a profit. 

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One tactic is to ask you to invest a small amount of money and then increase that over time. If you then try to withdraw your funds, they’ll create barriers that prevent you from accessing your account. Don’t take the bait in the first place.

3. Watch out if they push you to an encrypted platform

If you’re texting with a stranger and they ask you to move the conversation to WhatsApp or Telegram, don’t do it. Many scammers turn to these encrypted platforms because the secure messages are more difficult for law enforcement to detect and trace.

4. Don’t fall for so-called success stories

Scammers like to brag about their own alleged wealth by sharing stories about how they achieved their gains. The goal is to make you feel as if you’re missing out on the profit party. They may share how they made money through cryptocurrency, forex (foreign exchange), or other investments. 

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Here, they try to reel you in through a FOMO (fear of missing out) ploy before they ask you to invest your own money, or you ask them how to get in on the investment.

5. Look out for urgent or high-pressure tactics

A scammer may try to pressure you into investing by creating a sense of urgency before the opportunity fades away. At that point, you may already trust them, so your spider sense won’t necessarily be tingling. But that sense of urgency should be a red flag that this so-called opportunity isn’t legit.

6. Avoid phony trading websites

Scammers often cook up fake trading sites and platforms that look like the real thing. Such sites may show you phony account balances, pretend profits, and make-believe customer reviews or ratings. When faced with such a website, check for its licensing and regulation approvals, and consult independent reviews.

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