Securities Regulation Daily Wrap Up, INVESTOR EDUCATION—SEC warns investors about romance scams, (Apr 16, 2025)

By Jay Fishman, J.D.

The Commission lays out the red flags and provides helpful videos and other resources.

The SEC’s Office of Investor Education and Advocacy (OIEA) released its anti-fraud public service campaign warning investors about “pig butchering” scams, which include romance, financial grooming and other relationship schemes. The Commission’s then-Acting Chairman Mark Uyeda declared, “Investor protection is a vital part of the SEC’s mission. These kinds of frauds can be devastating and cause investors to lose billions of dollars every year.”

Red flags. Lori Schock, the OIEA Director, warned investors that “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.” And “Don’t respond. Instead, ignore, block or delete these senders from your phone or messaging app.” The other takeaways include:

• Be wary of unsolicited investment opportunities no matter how much you trust the person;

• If you suspect you might be caught up in a scam, stop communicating with the individual immediately and do not give any more money; and

• Report the scam to the SEC at https://www.sec.gov/submit-tip-or-complaint/tips-complaints-resources/report-suspected-securities-fraud-or-wrongdoing

Resources. OIEA, as part of the public awareness campaign, provides two animated videos: Don’t Open the Door to Scammers” (https://youtu.be/DNOfuA-_-c8) and “Let’s Talk About Relationship Investment Scams” (https://youtu.be/IFdzpHYipm8).

Also, there is a resource page—https://www.investor.gov/protect-your-investments/fraud/types-fraud/relationship-investment-scamsthat tells investors how relationship investment scams work, what investors should look out for, and how investors can protect themselves and others.

Lastly, there is an investing quiz (https://www.investor.gov/additional-resources/spotlight/investing-quizzes/relationship-investment-scams) plus a new article from Director Schock: “Relationship investment scams—Starts with ‘Hello,’ But Could End With Saying “Goodbye’ to Your Money.”

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