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Smart investing starts with due diligence

As an active member of the Retirement Industry Trust Association (RITA), STRATA Trust Company supports initiatives that educate investors on how to protect their retirement savings from investment fraud and financial scams.

Stay informed before you invest

Self-directed IRAs offer greater investment flexibility, but with that freedom comes the responsibility of conducting due diligence. Understanding the risks and recognizing common fraud tactics can help you protect your assets and make informed decisions.

  • Know the risks: Fraudsters often target self-directed IRA investors with misleading claims about “IRS-approved” investments or guaranteed returns. The IRS and regulatory agencies do not endorse specific investments.

  • Educate yourself: Learn how fraudsters operate by reviewing investor alerts from the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

  • Be skeptical of unrealistic returns: Any investment that promises high returns with little or no risk is a red flag. If it sounds too good to be true, it probably is.

Investor alerts from the SEC CFTC fraud awareness

Do your research

Verify investment opportunities and promoters to make informed, secure financial decisions.

Verify the investment

  • U.S. Securities and Exchange Commission (SEC)

  • North American Securities Administrators Association (NASAA)

Understand the investment

  • How does this investment generate returns?

  • What are the risks?

  • Can I access my funds if I need to?

STRATA's role as a custodian NASAA investor education

Recognize common fraud tactics

Spot the warning signs of investment fraud and protect your retirement savings from common scams with these key insights and trusted resources.

Ponzi or pyramid schemes

Fraudsters use new investor funds to pay returns to earlier investors, creating the illusion of a legitimate, profitable investment. These schemes often collapse when new money stops coming in.

Red flag: Promises of high, consistent returns with little or no risk.

Promoter fraud / unregistered offerings

Promoters pitch private placements or alternative assets (e.g., real estate, private equity, crypto, or promissory notes) that sound legitimate but are either grossly misrepresented or don’t exist at all. These offerings often bypass SEC registration requirements, making verification difficult.

Red flag: Pressure to act quickly, vague investment details, or reliance on affiliation with well-known brands without documentation.

Pig butchering scams (relationship-based fraud)

These scams involve fraudsters building a false relationship with the investor — often over weeks or months — through social media, messaging apps, or dating platforms. Once trust is established, the scammer encourages the investor to roll over retirement funds into a self-directed IRA to invest in fake crypto platforms, private offerings, or high-yield “guaranteed” opportunities.

Red Flag: A new online relationship quickly shifts to financial discussions, especially involving cryptocurrency or exclusive investment deals, with pressure to act urgently or in secret.

Misuse of custodian relationship

Fraudsters often tell investors that the IRA custodian “endorses” or “approves” the investment, when in fact SDIRA custodians are non-fiduciary "passive" and only validate if the investment is administratively feasible to hold in a self-directed IRA account in accordance with IRS regulations.

Red flag: Any claim that a custodian has vetted or guarantees the investment.

Protect your personal information

Keep your financial data secure and safeguard your IRA from unauthorized access and fraud.

Secure your accounts

Use strong, unique passwords and enable multi-factor authentication where possible.

Learn cybersecurity basics

Be cautious with communications

STRATA will never ask for sensitive account information through email or unsolicited phone calls. We will only contact you by phone or email to clarify transaction details after you have initiated a request.

Prevent identity theft

Monitor your accounts

Regularly review your financial statements for unauthorized transactions.

Respond to data breaches

Report suspected fraud

If you suspect fraudulent activity or have been targeted by a scam, it's important to report it to the appropriate authorities as soon as possible.

  • Report fraud to the SEC

    If you've encountered investment fraud related to securities, misleading financial statements, or unregistered investment professionals.

  • File a complaint with the CFTC

    If your fraud concerns involve commodities, forex trading, or derivatives, report it to the CFTC, which regulates these markets.

  • Find your state securities regulator

    State securities regulators oversee investment firms and enforce local securities laws. If your issue involves an investment advisor or a company operating in your state, report it to NASAA.

  • Report fraud to the FTC

    The FTC handles complaints related to fraudulent business practices, identity theft, and deceptive marketing. If you were targeted by a scam, including phishing or fraudulent investment offers, report it here.

We're here to help

Stay informed, conduct due diligence, and reach out to STRATA with any concerns about the security of your self-directed IRA.

Call us at 866-928-9394 Email

A smarter way to invest starts here

  1. Open: Choose the type of IRA that fits your goals and complete our quick online application.

  2. Fund: Transfer funds from another IRA, roll over a 401(k), or make a new contribution.

  3. Invest: Tell us where to direct your investment—we’ll manage custodial details while you start enjoying the tax advantages.

Get started Let's connect

James

Well beyond expectations

STRATA Trust is going well beyond its requirements in assisting me with some unique issues with an investment. I have always found their fees very reasonable. But this recent effort has been very very helpful. And the assistance came from customer service at the management level. Cannot say enough about the service.

Source: TrustPilot

Scott W.

Seamless

Seamless transactions and great communication!

Source: TrustPilot

Denise

STRATA as a whole has been amazing

STRATA as a whole has been amazing, and I am so glad I chose them to keep my self-directed IRA account. They are extremely helpful, communicative, thorough, timely, and a safe place to store my investments and communicate with. Every department that I have been in contact with has been equally helpful, and I have complete trust in STRATA. Thank you, STRATA

Source: TrustPilot

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