The Rational Reminder Podcast – Episode 366

Title: Avoiding Investment Scams
Date: July 17, 2025
Hosts: Benjamin Felix, Cameron Passmore, and Dan Bortolotti

Overview

In Episode 366, the hosts take a deep dive into the world of investment scams, focusing on the evolving techniques targeting both everyday investors and professionals. Drawing from recent personal experiences—including direct impersonation of Ben Felix across online platforms—they break down how scams are perpetrated, why they’re so effective, and what specific red flags to look out for. This episode is a focused "reality check" for listeners, whether they’re experienced investors or concerned about friends and relatives, offering actionable tips to identify and avoid scams.

Key Discussion Points & Insights

1. The Ubiquity and Evolving Nature of Investment Scams

• Scams aren’t just abstract risks; they’re increasingly common, sophisticated, and often impersonate trusted financial personalities.
• Ben shares recent personal experiences—scammers using his likeness on YouTube, email, and messaging apps to defraud listeners and viewers.
• Notably, AI-powered voice and video cloning now make impersonation harder to detect.

“I’ve seen people using AI to literally clone my voice, to send someone a voice note in a direct message on Twitter trying to convince them that they’re me. Stuff like that’s pretty scary.” — Ben (05:34)

2. Types of Scams — Real Examples and Mechanics

2.1. Investment Group Scams / Pump & Dump Schemes

• Scammers pose as reputable professionals in Telegram or WhatsApp groups, promising exclusive market insights or research.
• Example: Ben infiltrated a WhatsApp group using his own name and image—found 90+ Canadians targeted to buy obscure stocks, likely artificially inflating prices so scammers could “dump” their shares.
• Victims were lured by supposed “research” then pressured to invest more after seeing initial stock price jumps.

“Real people—a Canadian person who’s the client of a Canadian advisor—was in an investment group run by someone pretending to be me. Wow. Which is pretty scary.” — Ben (17:03)

2.2. Email and Direct Message Impersonation

• Scammers scrape YouTube comments for emails, then reach out pretending to be Ben, thanking viewers for engagement and offering “opportunities.”
• Reports of AI-generated voice impersonation and potentially video clips being used in DMs.

“If I ever DM you a video trying to convince you to buy a specific stock, you should know it’s not me.” — Ben (23:38)

2.3. YouTube Comment "Pig Butchering" Scams

• Fake “testimonials” in comments, often with specific dollar figures ($200,000 loss, $3 million net worth) designed for psychological effect.
• Scammers use real registered advisors’ names to trick victims who perform regulatory searches—websites and credentials faked.
• Goal: Build trust, simulate profits, and ultimately steal funds or personal data.

“The scammers figured that out. They don’t post links, they post full names… They’ll use the name of an actual registered investment professional so that the name shows up in registration searches.” — Ben (27:21)

3. Common Tactics and Psychological Levers

• Source Credibility & Social Proof: Exploiting trust in authoritative figures.
• Behavioral Biases: Optimism bias, present bias, regret aversion, representativeness, and the halo effect make people susceptible.
• Red Flags:
  • Guaranteed high returns (e.g., 5–10% per month; 80%+ annualized returns)
  • No downside risk; “alternative insurance covers for any losses”
  • Communications via WhatsApp, Telegram, generic email addresses (e.g., Gmail)
  • Requests for personal information, account logins, or to install suspicious files

“Nobody has the ability to consistently identify stocks that will have high returns in the future. Trading individual stocks is extremely risky... But especially if they want to share those high returns with you on WhatsApp, the rare talent, they are out there… They are not on WhatsApp or Telegram sending their trading strategies to Internet strangers.” — Ben (20:43)

4. Prevention & What to Do If You Suspect a Scam

4.1. If Contacted by “Ben Felix” (or a similar authority):

• Ben will not reach out for trading advice, enticing investment schemes, or through non-official channels.
• Authentic contact: Only via a PWL Capital email address; rarely directly, mostly via official firm channels.

4.2. How to Verify Professional Advisors

• Use regulatory databases: aretheyregistered.ca
• Independently verify contact details—call official numbers, not those provided by the “advisor.”

4.3. Trusted Contact Person (TCP)

• Canadian regulatory innovation: Advisors are required to ask clients for a TCP who can be contacted if financial exploitation is suspected.
• TCPs are a safety net, especially useful for the elderly or vulnerable.

4.4. Education Is Key

• Specific education on scam methods is shown to reduce victimization rates.
• Ben encourages listeners to share knowledge with less savvy friends, family, and clients.

“Scams are unfortunately part of life. They’ve been around forever and they’re not going anywhere. One of the best defenses… is knowledge of scams. If you know what the scammers are trying to do, you’ll be able to avoid getting sucked into their traps.” — Ben (38:35)

5. Memorable Quotes & Moments

• On encountering his own impersonator:

  “It’s such a surreal thing. I was kicked out of the group too... 90 people in this WhatsApp group being scammered. It’s really wild stuff.” — Ben (19:55)

• On guaranteed high returns:

  “5% per month... That’s an annual return of 80%, which is pretty good. It is implausible that Daisy on YouTube... has just happened to find something better than the Renaissance Technologies Medallion Fund and is excited to tell you about it in a YouTube comment.” — Ben (33:23)

• On PDFs and technical sophistication:

  “This PDF that I received... it is honestly incredible. It’s like a masterclass in what to look out for in an investment scam. Sorry for this word, Cameron. It contains huge amounts of financial bullshit.” — Ben (29:53)

6. Community Engagement: Financial Planning “Hot Takes”

• The hosts share user-submitted financial planning “hot takes” from the RR Community (40:32–48:15)
• Examples of unconventional views:
  • Be more active in bond holdings at retirement.
  • Governments should provide most retirement income.
  • Broad international diversification.
  • Only insure catastrophic risks; less on minor or avoiding unnecessary insurance.
  • Simplicity and patience are superior to product complexity and frequent tinkering.

“Start with determining how much you need and when you need it, then align savings and portfolio choice to those needs. Most people… just start with fund selection.” — Quoting community member Robert T. (46:15)

Notable Timestamps

| Timestamp | Segment/Discussion | |-----------|-----------------------------------------------------------------------------| | 04:00–06:20 | Ben describes the “investment scams” episode topic, prevalence of AI scams | | 12:30 | Pump-and-dump example with David Rosenberg impersonation | | 17:00–20:41 | Ben infiltrates a WhatsApp scam group using his own identity | | 23:30 | Email/DM impersonation, AI-generated voice and video | | 25:07–29:53 | YouTube “pig butchering” scam breakdown, fake advisor websites | | 33:23 | Discussion on “guaranteed” returns—why they’re a red flag | | 38:35 | Emphasis on education/knowledge as primary defense against scams | | 40:32–48:15 | Community hot takes in financial planning | | 48:51–50:27 | Announcements: RR Community, upcoming meetups |

Takeaways & Action Steps

• Be extremely skeptical of unsolicited investment opportunities, especially those promising high or guaranteed returns.
• Scrutinize the channel and communication method: Official professionals never use generic messaging apps or personal emails for investment advice.
• Verify credentials independently using registered, public resources.
• Consider establishing (or encouraging loved ones to establish) a Trusted Contact Person for investment and portfolio accounts.
• Regularly educate yourself and those around you on new scam methods as they evolve rapidly, often leveraging emotional and psychological manipulation.

“Be aware and be skeptical.” — Cameron (40:16)

For further resources and community discussion: community.rationalreminder.ca

Summary by The Rational Reminder Podcast. All quotes and opinions are those of the hosts and their guests.