'My Relative Is a Trader' Tip Scam
A contact claims a relative or mentor is a professional trader with 'insider' access, then steers you onto a fake platform to invest with them.
Think a message like this reached you? You can check it right now.
What this scam is
A friend or love interest mentions that their uncle, aunt, or mentor is a successful trader with special access or an algorithm, and offers to let you in. This is a variation of pig-butchering: the 'relative' angle adds credibility and lowers your guard. You are guided to a fake platform, shown fake profits, and encouraged to deposit more, with withdrawals eventually blocked. The 'insider' relative is part of the script.
What it usually looks like
- A contact citing a relative/mentor with special trading access.
- An invitation to invest alongside them.
- A specific platform to sign up on.
- Fake profits and pressure to deposit more.
Common warning signs
- Investment tips routed through a 'trusted relative.'
- 'Insider' or algorithmic access claims.
- A platform you were personally guided to.
- Withdrawal issues after depositing.
Example wording scammers use
“My uncle works at a hedge fund and shares his signals with family — I can add you.”
“His algorithm never loses; just deposit here and follow the trades.”
These are illustrative examples written by ScamSplain, not real messages.
What the scammers want
- Deposits into a fake platform.
- Your trust via a 'relative.'
- Escalating investments.
What to do
- Never invest based on an online contact's 'relative' or 'insider.'
- Treat guided sign-ups to specific platforms as a red flag.
- Verify any platform independently before depositing.
- Stop and consult someone you trust.
What to do if you already responded
- Stop depositing; preserve records.
- Report to ic3.gov and reportfraud.ftc.gov.
- Ignore later 'recovery' offers.