By Amy Herbert
FTC Consumer Advocate
April 26, 2022
If you’re looking to put in time and work investing, a free day trading webinar that promises to show you how to make $100,000 or more in “verified profits” in “under 45 days” might have you thinking “what have I got to lose?” Unfortunately, you might lose a lot. In the case of Warrior Trading, the promises were false and many people lost thousands of dollars, the FTC says.
According to the FTC’s complaint, Warrior Trading drew people in with a “free webinar” that promised to demonstrate “a quick and simple way to get your dream of day-trading success going.” Once the company had people on board, it convinced them to pay hundreds or thousands of dollars to be a part of its trading programs.
But the company’s advertised results weren’t typical, and the company didn’t have the evidence to back up its claims. The FTC says most customer accounts actually lost money — so people not only lost the money they paid for the program but also lost money trading.
To settle the FTC’s charges, Warrior Trading has agreed to stop making claims about earnings without evidence and will pay $3 million, which will be refunded to customers.
Before you purchase any investment-related service or any offer that includes claims about earnings:
- Take your time.
- Avoid high-pressure sales pitches that require you to act now or risk losing out.
- Be skeptical about success stories and testimonials.
- Search online for the company’s name plus words like “review,” “scam,” or “complaint.” But know that dishonest companies sometimes create websites and videos to convince you their companies aren’t scams.
- Be suspicious of any review that tries to sell you something, including similar services and products.
Read Real Estate and Investment Scams for more.