SEC Launches Anti-Fraud Public Service Campaign on Relationship Investment Scams

The U.S. Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy (OIEA) has unveiled an anti-fraud public service campaign to warn investors about the devastating impact of relationship investment scams on their financial future.

These scams, often referred to as romance scams, financial grooming scams, or “pig butchering” scams, unfold over an extended period and involve fraudsters establishing trust, typically online or via text messages, before manipulating victims into fraudulent investments.

To raise awareness, the SEC’s campaign features two animated videos, “Don’t Open the Door to Scammers” and “Let’s Talk About Relationship Investment Scams”, also includes a dedicated resource page offering guidance on how relationship investment scams work, what investors should look out for, and how investors can protect themselves and others.

SEC Educational Videos on Scam Prevention

SEC’s key warnings for investors:

• Ignore messages from anyone they don’t know and consider blocking or deleting them.
• Be wary of unsolicited investment opportunities, no matter how much they trust the person.
• If they suspect they may be caught up in a scam, stop communication with the individuals immediately, and do not give them any more money.
• Report the scam to the SEC.

“If you receive an email or text message from a person, number, or email address you don’t know or recognize, it’s a red flag of fraud — especially if the message is vaguely worded or appears aimed at someone else,” said Lori Schock, Director of the SEC’s OIEA. “Don’t respond. Instead, ignore, block, or delete these senders from your phone or messaging app.”