SEC
The U.S. Securities and Exchange Commission handles fraud involving stocks, bonds, investment funds, promissory notes, and most "investment contracts," including many crypto offerings.
sec.gov/tcr · Tips, Complaints and Referrals portal
Independent investor information
Returns that never dip deserve a closer look.
Report Ponzi explains how Ponzi schemes work, how to recognize one, and exactly where to report it. If you're worried about money you've already put in, start with the step-by-step guide.
STATEMENT · ILLUSTRATIVEAcct ••••
| Jan | Monthly return | +1.00% |
| Feb | Monthly return | +1.00% |
| Mar | Monthly return (markets −9%) | +1.00% |
| Apr | Referral bonus | +$500 |
| May | Withdrawal request | "Processing" |
| Jun | Withdrawal request | "Bank audit" |
A made-up statement showing four warning signs together: identical returns in any market, a payment for recruiting, and stalled withdrawals with changing excuses.
Already invested
I think I'm in a Ponzi scheme. What do I do?
What evidence to save, what not to do, and why money you withdraw now may be clawed back later.
Read the guide → ReportingWhere do I report this?
A short questionnaire that points you to the SEC, CFTC, FBI, FINRA, or your state. Includes an evidence checklist and timeline worksheet.
Find the right agency → Before you investHow the pitch works
Annotated examples of guaranteed returns, urgency, referral rewards, affinity marketing, and withdrawal excuses.
Study the tactics →What makes it a Ponzi scheme
A Ponzi scheme pays earlier investors with money from newer investors, while telling everyone the payments come from profits. There may be no real investment at all, or a small real business used as cover. Because nothing is actually producing the promised returns, the scheme needs a constant flow of new money. It collapses when new money slows down or too many people ask for their money back at once.
Common warning signs
- High returns described as guaranteed or "low risk"
- Returns that stay smooth through market downturns
- Seller or product not registered with the SEC or a state
- A strategy described as too secret or complex to explain
- Paperwork errors, or statements only from the promoter
- Pressure to roll over gains instead of cashing out
- Delays, fees, or excuses when you try to withdraw
- Rewards for bringing in friends, family, or members of your group
Any one of these deserves questions, not panic. Legitimate investments sometimes have one; Ponzi schemes usually have several.
Step-by-step guide
I think I'm in a Ponzi scheme. What do I do?
Work through these steps in order. Most of them take an afternoon. The goal is to protect yourself, keep the evidence intact, and get the information to people with the power to act.
Stop putting money in, and stop recruiting
Don't add funds, don't "roll over" gains, and don't invite anyone else, even if you're offered a bonus or told your account will be frozen if you don't. Anyone you bring in becomes another victim, and promoters who recruited others can face legal claims of their own.
Don't confront the promoter or announce your suspicions
Warning the people running it can lead them to move money, destroy records, or pressure you. You can keep asking ordinary questions in writing, such as asking for an audited statement or the name of the custodian bank, but save every reply.
Save the evidence before it disappears
Websites, group chats, and investor portals often vanish when a scheme starts to fail. Capture them now. The evidence checklist and timeline worksheet on the reporting page walk you through what to keep.
- Account statements, contracts, subscription agreements, and receipts
- Bank and wire records, checks, and crypto transaction IDs and wallet addresses
- Emails, texts, and chat messages, exported in full, not just screenshots
- Promotional material: brochures, slide decks, videos, websites, social posts
- Names, phone numbers, and roles of everyone involved, including the person who introduced you
Write down your own timeline while you remember it
Note when you first heard about the investment, every deposit and withdrawal, and every promise made to you. Dates and dollar amounts matter most. Investigators and lawyers will ask for this first.
Work out whether you're a "net winner" or "net loser"
Add up everything you put in and everything you took out. This number decides how you may be treated if the scheme is shut down. Use the calculator below and read the clawback section carefully before deciding whether to withdraw.
Report it
File with the regulator that fits the investment. You don't need proof of fraud to report, only facts that worried you. Find where to report →
Talk to a lawyer about your own position
A securities or investment-fraud lawyer can advise on withdrawals, clawback exposure, and claims. Many offer a free first consultation. If you helped recruit others or were paid commissions, get advice before you do anything else.
Expect a second wave of scams
Victims of fraud are targeted by "recovery" services that promise to get money back for an upfront fee, sometimes posing as lawyers or government agencies. Real regulators and court-appointed receivers do not charge victims to file a claim.
What not to do
- Don't delete emails, chats, or apps, or shut down accounts connected to the investment.
- Don't sign new agreements, releases, nondisclosure agreements, or "conversion" offers into a new fund.
- Don't pay a fee, tax, or "unlock charge" to get your withdrawal released.
- Don't move or hide assets you received from the scheme. That can make your situation worse.
- Don't post accusations naming people online. Share facts with regulators instead.
- Don't assume you'll be ignored because the amount is small. Small reports often connect to larger cases.
Clawbacks
Why money you withdraw may have to be paid back
When a Ponzi scheme collapses, a court usually appoints a receiver or bankruptcy trustee to collect what's left and divide it among victims. Because a Ponzi scheme's "profits" were really other investors' money, the trustee can sue to recover payments that went out before the collapse. These lawsuits are called clawbacks.
Fictitious profits are the main target. If you took out more than you put in, the amount above your principal is usually recoverable, even if you had no idea it was a fraud. Courts have generally reasoned that it's unfair for some victims to keep other victims' money.
Principal can be at risk too. Investors who acted in good faith can often defend the return of their own principal. Investors who knew or should have known about the fraud, and insiders or promoters paid commissions, may have to return more.
Look-back periods vary. Federal bankruptcy law reaches transfers made in the two years before a bankruptcy filing. State fraudulent-transfer laws, which trustees also use, often reach back four years or longer. In the Madoff case, the trustee pursued clawbacks against investors who had withdrawn fictitious profits over many years.
Withdrawing now isn't wrong, and it may reduce what you lose. But it doesn't guarantee you keep the money. Get legal advice if a large withdrawal is involved, and keep records of every transfer either way.
Net position calculator
Totals only. Nothing you enter leaves your browser.
Example figures shown. This is a rough guide to how trustees commonly classify investors. Real cases can count fees, transfers between accounts, and reinvested gains differently.
Reporting tool
Where do I report this?
Different agencies handle different kinds of investments. Answer four questions and we'll point you to the right places. Filing with more than one agency is fine and often helpful.
Where to report
The agencies
CFTC
The Commodity Futures Trading Commission handles fraud in futures, options, forex, and commodities, including fraud involving crypto assets treated as commodities.
FBI · IC3
The FBI's Internet Crime Complaint Center takes reports of fraud committed online, by wire, or through crypto. Reports feed criminal investigations, and fast reporting can sometimes help freeze transfers.
FINRA
FINRA oversees brokerage firms and registered brokers. Report here if a broker was involved, including a broker selling investments "away" from their firm. Check anyone's record on BrokerCheck.
State securities regulator
Every state has one. They often act fastest on local schemes, and many investment fraud cases are brought at the state level. See the full directory below.
State attorney general
Attorneys general handle consumer fraud, including business-opportunity, pyramid, and real estate schemes that may fall outside securities rules. In some states the AG also runs securities enforcement.
FTC
The Federal Trade Commission collects reports on pyramid schemes, business-opportunity fraud, and other consumer scams, and shares them with law enforcement nationwide.
What to include in a report
- Names of the people and companies involved, with websites, phone numbers, and addresses
- What you were told the investment was and what returns were promised
- Dates and amounts of every payment you made and received
- How you paid: bank, wire, payment app, check, or crypto wallet
- How you were approached and who introduced you
- What made you suspicious, in plain words
- Copies of key documents, or a note that you have them
What happens after you file
- You'll usually get a confirmation or submission number. Keep it.
- Agencies rarely update individual filers, because investigations are confidential. Silence doesn't mean your report was ignored.
- Staff may contact you for documents or an interview.
- Cases can take months or years. Agencies may sue, freeze assets, or refer the case for criminal charges.
- A report isn't a claim for your money. If a receiver or trustee is appointed, there will be a separate claims process, often announced on a court-approved website.
Evidence checklist
0 of 0Ticks are saved in this browser only.
Preserving emails and messages
- Export full emails as files (.eml or PDF). Forwarding strips the original header details investigators use.
- Export entire chat histories from WhatsApp, Telegram, Signal, or Discord, including group chats, using the app's export feature.
- Screenshots help, but should show the sender, date, and time.
- Keep voicemails and recorded webinars. Note who spoke and when.
- Store copies in two places, such as a USB drive and a cloud folder you control.
Preserving payment records and promotions
- Download bank and card statements for the whole period, not just the transactions you remember.
- Save wire confirmations with the receiving bank and account name.
- For crypto, record transaction IDs, wallet addresses, exchange names, and dates.
- Save web pages as PDFs with the address and date visible. Free archive services can also record a public page.
- Keep brochures, slide decks, contracts, and any "account dashboard" screenshots.
Timeline worksheet
Example rows are filled in. Replace them with your own. Saved in this browser only.
| Date | What happened | Amount ($) | Proof you have |
|---|
State securities regulators
Every state and D.C. has an office that regulates investments sold there. Report to the state where you live and the state where the seller is based. Agency names change from time to time, so use the NASAA directory to confirm current contact details.
| State | Securities regulator | Contact |
|---|
Ask us
Unsure if this is a Ponzi? Let us help you figure it out.
Describe what you were offered and what's worrying you. We'll review it and reply with what we see and which agencies to contact. We are not a law firm or a government agency, and we can't investigate or recover money. If money is moving right now, report to the agencies above first.
Don't include passwords, account numbers, Social Security numbers, or wallet recovery phrases. No legitimate helper ever needs them.
Insider and whistleblower guide
If you work inside it
Employees, accountants, and business partners often see the problem first: invented statements, money moving between accounts, returns paid before any profits arrive. Federal programs reward insiders who report and protect them from retaliation. The rules are technical, and the order you do things in matters.
Talk to a lawyer first. A whistleblower lawyer can tell you how to report without breaking the law, keep you eligible for an award, and protect your job. Many work on contingency, meaning they're paid only from an award.
SEC Whistleblower Program
Securities fraud
- Created by the Dodd-Frank Act in 2010.
- Awards range from 10% to 30% of the money collected when sanctions in the case exceed $1 million.
- Your information must be original, meaning from your own knowledge or analysis, and you must provide it voluntarily, before the SEC asks you for it.
- Report through the SEC's tip portal or on Form TCR.
- You can report anonymously, but to be paid an award anonymously you must file through a lawyer.
- The SEC keeps your identity confidential, with limited exceptions.
CFTC Whistleblower Program
Futures, forex, commodities
- Also created by Dodd-Frank, with a similar structure.
- Awards of 10% to 30% of sanctions collected when they exceed $1 million.
- Covers fraud in futures, options, swaps, forex, and commodities, including crypto assets the CFTC treats as commodities.
- Anonymous filing for an award also requires a lawyer.
- Awards can also come from related actions brought by other agencies.
Protection from retaliation
It's illegal for an employer to fire, demote, threaten, or harass you for reporting securities or commodities fraud to the government. Several laws apply, and each has its own conditions.
Dodd-Frank Act. Protects whistleblowers who report to the SEC or CFTC. The Supreme Court held in 2018 that Dodd-Frank's protection covers people who reported to the SEC, not those who reported only inside their company. Reporting to the agency is what triggers it.
Sarbanes-Oxley Act. Protects employees of public companies, and some of their contractors, who report internally or to regulators. A retaliation complaint generally has to be filed with OSHA within 180 days.
Confidentiality agreements. SEC rules bar anyone from using a confidentiality or severance agreement to stop you from reporting to the SEC. A clause that says otherwise doesn't block you from talking to the agency.
State laws. Many states have their own whistleblower protections, which may cover private companies and longer deadlines.
Before you report
- Don't take documents you aren't authorized to access, or remove privileged legal material. Ask a lawyer what you can keep.
- Don't use company devices or email to contact regulators or your lawyer.
- Write down what you saw, when, and who else knew, on your own device.
- Note the deadlines. Retaliation filing windows can be short.
- If you took part in the conduct, you may still be eligible, but you need a lawyer before you say anything.
Case files
Five schemes that shaped the rules
Each of these lasted because it looked believable to smart people. The mechanics are worth knowing because the same moves show up in new schemes every year.
How long each one lasted
Approximate years between when the fraud is believed to have begun and its collapse. Dashed segments mark periods investigators considered likely but couldn't fully establish.
Library
Sales pitches and manipulation tactics
Ponzi promoters rarely rely on one trick. They layer tactics so each one covers for the others' weaknesses. Below, each tactic is broken down with a made-up example, why it works on people, what an honest explanation might look like, and how to check.
A warning sign isn't proof. Legitimate businesses run referral programs, set deadlines, and market to communities they belong to. A sign tells you where to look. What turns suspicion into a strong signal is several signs together, plus an answer that can't be verified independently.
How the tactics work together
FICTIONAL EXAMPLE · Composite message written for this site
Hi friends! As many of you know, our fellowship's own Brother Martin has been helping families in our congregation grow their savings for six yearsD. His fund uses a proprietary arbitrage system the big banks don't want you to know aboutA, and it has paid 2% every single month, guaranteedA, even through the downturn. I just checked my dashboard and my balance is up to $84,300E! The fund is closing to new members on FridayB, but Martin agreed that anyone who brings in two families gets a 5% founder's bonusC. One note: withdrawals are paused for a few weeks while the fund moves to a new bankF, so it's a great time to reinvest your earnings.
A Guaranteed returns and secret strategy
B Manufactured urgency
C Referral incentives
D Affinity marketing
E Fabricated account balances
F Excuses for delayed withdrawals
Read it as a system. Trust from the community (D) lowers people's guard. The guarantee (A) creates the desire. The balance on screen (E) feels like proof, though it's only a number the promoter typed. The deadline (B) cuts off time to check. The bonus (C) turns victims into recruiters, which brings in the new money the scheme needs. And the withdrawal pause (F), combined with encouragement to reinvest, keeps money from leaving at the exact moment the scheme can't pay.