The U.S. Securities and Exchange Commission (SEC) is intensifying its efforts to protect the public from sophisticated online scams that blend romance and fraud. Through its Office of Investor Education and Advocacy (OIEA), the agency has launched a fresh public service initiative that aims to educate people about so-called “pig butchering” scams and other relationship-based investment frauds.
These scams typically start with an unexpected message often through social platforms or text from someone who gradually earns the target’s trust. Once a personal connection is built, the scammer manipulates the victim into putting money into bogus investment schemes. These types of fraud are frequently called romance scams, financial grooming, or “pig butchering” a term that reflects how scammers fatten up their victims with attention before financially exploiting them.
CFTC Also Fighting Back with “Dating or Defrauding?” Campaign
The SEC’s campaign follows a similar effort rolled out by the Commodity Futures Trading Commission (CFTC), titled “Dating or Defrauding?”. That initiative is designed to combat a surge in romance-related investment scams that reportedly cost victims a staggering $4 billion in 2023 alone.
Both agencies have noted that scammers are evolving their tactics, using fake personas and targeting people through dating apps and social networks. These platforms are becoming prime hunting grounds for criminals running fraudulent crypto and investment schemes.
What the SEC’s Public Campaign Includes
As part of its new campaign, the SEC has released two animated educational videos: “Don’t Open the Door to Scammers” and “Let’s Talk About Relationship Investment Scams.” These videos aim to visually illustrate how such scams unfold and what red flags to look out for.
Additionally, the SEC has put together an online resource hub packed with educational materials. Visitors can learn how these scams operate, understand the warning signs, and discover what steps to take to protect themselves. There’s also an interactive quiz designed to test users’ awareness of investment risks, along with an article by OIEA Director Lori Schock titled “Relationship Investment Scams – Starts With ‘Hello,’ But Could End With Saying ‘Goodbye’ to Your Money.”
Staying Safe: What the SEC Advises
The agency’s key advice includes:
- Don’t engage with unsolicited messages from unknown contacts.
- Be cautious about anyone who proposes investment opportunities out of the blue.
- If something feels off, cut off communication immediately.
- Report any suspicious activity directly to the SEC.
Mark Uyeda, the SEC’s Acting Chairman, stressed that safeguarding investors continues to be a top priority, especially as fraudulent activity linked to online relationships remains a growing threat. He pointed out that these scams are responsible for billions in losses each year.
Meanwhile, Lori Schock warns the public to treat vague or misdirected messages especially those asking for money or promoting investments with high suspicion. She encourages people to block, delete, or report any such contact.
