How to Avoid Income Scams: Get-Rich-Quick Promises Explained (FTC Video Guide)
Online ads and videos promise that a secret system will help you earn big money from an online store, real estate, or trading, as long as you buy the course or coaching first. In this FTC video, an FTC attorney explains how these income scams work and how to spot them. Our guide turns that into a quick checklist.
From the Federal Trade Commission (FTC) · Part of our Online Safety Video Library
What the video shows
An FTC attorney explains that income scams promise big earnings through online businesses, real estate, the stock market, or selling products. Warning signs include promises that you will make lots of money using someone’s method, pressure to sign up fast, and guarantees of success.
The video points out that there is no guaranteed way to make money, and that the FTC has shut down companies that made these claims. It shows how a promoter’s ad promised big online income while buyers got little useful help and lost their money.
Key takeaways
- Any promise of guaranteed income is a red flag.
- Pressure to “sign up today” or “before spots fill up” is meant to stop you from researching.
- Lavish lifestyle videos and testimonials are marketing, not proof.
- Many schemes earn money by selling more coaching, upgrades, or memberships to you.
- Searching the company name plus “scam” or “complaint” can reveal problems fast.
Research before you invest
- Search the company or promoter’s name with “scam,” “complaint,” and “review.”
- Be skeptical of testimonials, earnings screenshots, and luxury lifestyle images.
- Check with your state attorney general for complaints.
- Never borrow money or use credit cards to pay for a program that promises it will pay for itself.
- Warn friends and family, and report income scams at ReportFraud.ftc.gov.
Where income scams show up
- Social media ads and short videos from “self-made” influencers
- Free webinars that end in an expensive coaching upsell
- Online store or dropshipping “done for you” programs
- Real estate and trading courses that promise passive income
- Group chats or messages from new online “friends” promoting investments
Common questions
Is every online course a scam?
No. Many courses teach real skills. The red flags are guaranteed earnings, pressure, and a business model that depends on selling more upgrades to you.
They offered a money-back guarantee. Am I protected?
Scam refund policies are often hard or impossible to use. Read the terms carefully, and remember a guarantee is only as good as the company behind it.
What if a friend recruited me?
Friends can be fooled too. Do your own research and talk it over with someone outside the program before paying.
Related guides
- Work-at-Home Scams (Video Guide)
- Hidden Fees: How to Spot Charges You Never Agreed To
- Online Romance Scams (Video Guide)
- Why Report Fraud? (Video Guide)
About this video
This video was produced by the Federal Trade Commission (FTC), a U.S. government agency, and plays from the agency’s own channel. Juggling Chaos wrote this summary and guide; we are not affiliated with or endorsed by the agency. Some details on screen, such as phone models or web addresses, may look dated, but the advice still applies. Checked October 7, 2026.
See the FTC’s advice on money-making opportunities and investments.
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