October 31, 2025
As the nights grow longer and shadows dance, we often find ourselves contemplating what truly sends shivers down our spines. This Halloween, as you prepare for ghosts and goblins, the Utah Division of Securities wants to shine a light on something far less ephemeral, yet equally capable of conjuring fear: risky investment pitches. In the spirit of the season and financial vigilance, let’s explore some “investments to be afraid of,” reminding ourselves
that due diligence and caution are the most potent spells against financial frights.
Much like high beams on a foggy mountain road, recent headlines have illuminated a landscape fraught with potential horrors, particularly within the more speculative corners of the financial world. We’ve seen a concerning rise in “pig butchering” schemes, but not by Leatherface.These schemes are where fraudsters cultivate relationships with individuals over time to lure them into fake investment platforms. Butchering scams often masquerade as legitimate opportunities in digital assets or foreign exchange transactions, eventually “slaughtering” the victims’ financial accounts void, much like the Swampman disappearing into the mist.
Beyond outright fraud, the inherent volatility of certain highly speculative assets should also give investors a spine-tingling chill. While the allure of quick gains can be enchanting, the reality is often a rollercoaster of dramatic price swings that can erode capital just as quickly as it is accumulated. Unlike traditional, regulated investments with established safeguards and transparent reporting, some newer, less understood assets exist in a more nebulous space. The lack of robust regulatory oversight in certain emerging markets – like cryptocurrency – can leave investors vulnerable to market manipulation, security breaches, and a general lack of recourse should things go awry.
Even the most widely-recognized digital assets, often touted as a new form of “stable” wealth, recently demonstrated their profound capacity for massive, sudden loss. In the span of just a few days this month, some of the largest cryptocurrencies witnessed a sharp decline – known as a “flash crash” – that wiped out billions of people’s hard-earned money. For investors who had been assured of the resilience of these key digital assets, this plunge served as a harsh, real-world lesson: in the world of highly speculative assets, volatility is guaranteed.
Canadian regulators have recently issued numerous investor alerts regarding unscrupulous trading platforms that operate outside of established financial frameworks and created a list of crypto businesses that they believe are safe to do business with. These platforms often promise extraordinary returns with minimal risk, preying on the hopes of individuals eager to grow their wealth. They frequently, however,lack the necessary licenses, consumer protections, and financial stability that legitimate institutions provide. Trusting your money with such entities is akin to walking through a haunted house blindfolded.
So, what’s an investor to do when faced with such ghoulish prospects? The key, as always, lies in education and prudence. Before venturing into any investment, especially those that are highly touted or seem to offer “guaranteed” riches, ask critical questions. Is the platform regulated by a reputable authority? Do you fully understand the underlying asset and its risks? Are you investing an amount you can genuinely afford to lose? We’ve all screamed at the screen “don’t open that door!!” or “don’t go down that hallway!!” Be sure your financial investments do not become a horror movie trope. Make informed and educated choices.
This Halloween, don’t let the fear of shadowy schemes, unregulated platforms, or the potential for loss keep you from investing. Instead, embrace the protective magic of sound financial planning and healthy skepticism towards anything that promises easy wealth. Invest wisely, stay informed, and ensure your financial future is filled with treats, not tricks.
