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The Federal Trade Commission is warning consumers—particularly younger social-media users—to be wary of investment “training” pitches that promise rapid wealth, passive income and little or no financial risk. The warning follows the FTC’s enforcement action against International Markets Live, also known as IM Mastery Academy and IYOVIA, which the agency alleged used deceptive earnings claims and unqualified “educators” to recruit consumers into an investment-training scheme.
For the credit and collections industry, the trend is another reminder that fraud losses can quickly become payment distress, depleted savings, account takeover exposure and downstream delinquency. Social platforms have become a central acquisition channel for fraudsters: in 2025, consumers reported $2.1 billion in losses from scams that began on social media, according to FTC data. Investment scams accounted for $1.1 billion of that total—more than half of all reported social-media scam losses.
Lifestyle Claims Mask Risk
The FTC’s latest alert focuses on social-media posts featuring exotic travel, luxury cars and claims that followers can replicate that lifestyle simply by “learning to trade.” Such promotions commonly market forex, cryptocurrency, stock-trading or other investment coaching programs with messages about quitting a job, earning money while asleep or achieving financial independence at a young age.
The core deception, the FTC says, is the suggestion that financial-market trading can generate predictable profits with minimal downside. Legitimate investing always carries risk, and no promoter can credibly guarantee either large returns or successful trading instruction.
“Anyone who says you can earn money in your sleep and there’s little to no risk” should be treated as a scammer, FTC consumer education specialist Terri Miller said in the local report that prompted the agency’s warning. The agency’s guidance is especially pertinent where social-media marketing blurs the line between aspirational lifestyle content, paid endorsements and offers to purchase investment education.
IML Enforcement Case
The agency highlighted its case against International Markets Live, which also operated as IM Mastery Academy and IYOVIA. According to the FTC, the company promoted “educators” who frequently lacked legitimate credentials and used false income claims to bring consumers into a broad investment-training operation.
The FTC said its enforcement action resulted in the business no longer operating, while its leaders were required to surrender assets valued at more than $90 million and were barred from selling trading-training services and investment opportunities in the future.
The case illustrates a familiar fraud pattern: a low-friction social-media pitch leads to a paid program, membership or purported trading opportunity; persuasive testimonials and images of apparent success reinforce the sales message; and victims may be pushed to make escalating payments or transfer money through platforms that present misleading evidence of investment performance.
A Costly Fraud Channel
FTC data show the breadth of the issue extends beyond investment education schemes. Nearly 30% of people who reported a fraud loss in 2025 said the interaction began on social media, and reported losses from social-media scams were eight times higher than in 2020.
Facebook generated the highest reported social-media scam losses in 2025, with WhatsApp and Instagram ranking second and third, respectively, according to the agency. The FTC also found that every age group except people age 80 and older reported losing more to scams initiated through social media than through any other contact method.
Social platforms enable fraud at scale because bad actors can buy ads, impersonate legitimate businesses, exploit information consumers post publicly and use the same audience-targeting tools available to legitimate advertisers. Investment scams may begin with a sponsored ad, a direct message from a purported adviser or a group chat populated with fake testimonials from “successful investors.”
Collections and Credit Implications
While the initial loss occurs outside the credit ecosystem, investment fraud can create immediate financial strain for consumers and operational challenges for financial institutions, creditors and collection agencies.
Potential downstream effects include:
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Consumers using credit cards, personal loans, cash advances or home-equity proceeds to pay for investment coaching, trading access or supposed investment opportunities.
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Sudden depletion of deposit balances and emergency savings, leaving borrowers unable to meet ordinary household obligations.
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Increased disputes involving card transactions, ACH payments, wire transfers and digital-asset transfers.
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Consumers becoming targets for recovery scams after the initial fraud loss, compounding their financial distress.
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Higher delinquency risk when a victim’s monthly obligations exceed remaining income and liquidity.
For creditors and collectors, a consumer reporting scam victimization may require a response that balances appropriate account servicing with a careful review for signs of unauthorized activity, coercion, account compromise or financial hardship. Documentation of fraud allegations, clear dispute procedures and referral pathways to an institution’s fraud, hardship or complaint-resolution teams can help reduce avoidable friction for affected consumers.
FTC Consumer Guidance
The FTC advises consumers to treat several claims as clear warning signs:
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Promises of substantial income with little or no risk.
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Guarantees that a coach, mentor or course can teach someone to trade successfully.
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Urgency tactics that pressure consumers to buy a course, transfer money or act before an offer “expires.”
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Claims supported primarily by online lifestyle posts, anonymous testimonials or screenshots of alleged profits.
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Unlicensed individuals or unregistered firms offering individualized investment direction.
Before paying for training or acting on an online investment pitch, consumers should research the company, its officers and its promoters using search terms such as “review,” “scam,” “complaint” or “fraud.” The FTC recommends looking beyond the first page of results because prominent search listings may be paid advertisements. Consumers also should check for complaints with their state attorney general and seek an independent second opinion from someone with their interests in mind.consumer.ftc
The agency further advises consumers not to allow a person met only through social media to direct investment decisions and to restrict the visibility of social-media posts and contacts, reducing the personal information available for fraudsters to exploit.
Suspected scams can be reported through the FTC’s ReportFraud.ftc.gov portal.
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