The U.S. Securities and Exchange Commission (SEC) is raising alarms about the growing risks of cryptocurrency scams and other investment fraud during World Investor Week 2024. Amid the rising influence of AI, social media, and aggressive financial marketing, investors are struggling to find reliable advice. The agency is focusing on scams involving cryptocurrencies, financial grooming, and “relationship” cons, warning that hype around emerging technologies can mislead unsuspecting individuals.
SEC Kicks Off World Investor Week 2024, Urging Investors to Avoid Fraud
The U.S. Securities and Exchange Commission (SEC) highlighted crypto risks during World Investor Week (WIW) 2024. The event, running from Oct. 7-13, will feature SEC outreach efforts emphasizing the need for accurate, impartial data to avoid falling victim to investment fraud, particularly in the context of rising cryptocurrency scams.
Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy, noted the growing challenges presented by emerging technologies and social media, particularly in relation to cryptocurrencies. Schock highlighted:
Hype around emerging technologies such as AI, finfluencers, social media, and aggressive investing marketers can make it challenging for investors to know where to turn for help.
The SEC warns of common investment scams, including “relationship investment scams, sometimes referred to as romance scams, cryptocurrency investment scams, and financial grooming scams,” which are increasingly prevalent.
Now in its eighth year, WIW is a global initiative spearheaded by the International Organization of Securities Commissions, aiming to promote investor education and protection worldwide. The SEC is serving as the U.S. national coordinator, working alongside agencies such as the Commodity Futures Trading Commission (CFTC), FINRA, the Securities Investor Protection Corporation, the National Futures Association, and the North American Securities Administrators Association.
The SEC explained that it will address current fraud trends, including scams involving relationships, cryptocurrencies, financial grooming, and “pig butchering” schemes. SEC Chair Gary Gensler reiterated the agency’s focus on investor protection, stating:
Investor protection is at the very core of the SEC’s three-part mission.
What do you think about the SEC’s statements? Let us know in the comments section below.
