Investors are being warned to be on their guard against a rising wave of investment scams promising big returns through trading "other people's money." According to a recent advisory by Tennessee securities regulators, fraudsters often operate these schemes online, targeting unsuspecting individuals via social media platforms or messaging apps like WhatsApp.

The con artists purport to provide a lucrative opportunity to trade stocks, forex, or cryptocurrencies using a false "proprietary trading platform" which they claim is powered by advanced artificial intelligence or unique algorithms, when in reality, such a platform does not exist; this ruse is particularly seductive to those who lack investment experience or the means to invest their own money, the schemers are actually fishing for a small upfront fee, typically a few hundred to several thousand dollars, with the illusory promise of hefty returns on the investments made with the fictitious platform.

As described by Tennessee's official financial advisory, these scammers sweeten the deal by offering a slice of the supposed profits in exchange for an initial investment or fee. They may even request personal financial information through an "application" to access the funds—a ploy for identity theft or unauthorized withdrawal of investors' funds.

Moreover, the scam tactics may include a multi-level marketing spin, whereby victims are incentivized to draw others into the scheme by promising them bonuses or a cut from the profits of those they recruit; naturally, the said trading profits are nothing but smoke and mirrors, and investors are sometimes given token initial payments as part of the deception to convince them to invest more heavily, or to bring in additional victims, but eventually, the scam artists cut off communication and vanish with their spoils leaving investors out of pocket.

Investors are encouraged to exercise utmost caution when approached with unsolicited investment offers and are urged to verify the legitimacy of any trading platform or scheme before committing their hard-earned money. The Tennessee Department of Commerce and Insurance's advisory on the matter is a timely reminder to remain vigilant in a digital landscape replete with sophisticated financial predators.