2 minute read
Advocacy Click Your Community Out of Online Scams
Click Your Community Out of Online Scams
“Let me tell you how I became the victim of fraud in the last way I ever expected. It started when my friend, Joe, who I’ve known for years and who is also Deaf, passed along some investing tips he received from someone in our Deaf meetup group on a social networking app.” Learn more in an investor video, told in American Sign Language with captioning and animation, from the U.S. Securities and Exchange Commission’s Retail Strategy Task Force (sec.gov/news/sec-videos/protecting-deaf-and-hearing-loss-communitiesinvestment-scams). The video and a recent SEC case affecting Deaf community members (sec.gov/news/press-release/2020-232) share important information about how members of Deaf, hard of hearing, and hearing loss communities can avoid investment scams.
Advertisement
Block Online Affinity Fraud
We all have communities that play important parts in our lives. Especially now more than ever, we rely on technology and virtual communities for support, information, connection to others, and access to opportunities. Unfortunately, fraudsters see online communities as places to exploit tight-knit groups, relationships of trust, and communication barriers.
The U.S. Securities and Exchange Commission (SEC) calls group-targeted frauds community-based fraud or affinity fraud. Fraudsters are always adapting their fraud and exploiting vulnerabilities to undermine investor protections. For example, in a past SEC case fraudsters targeted Deaf investors at Deaf community centers, but online tactics may include posing as a member of a group or recruiting group members through websites, email, social media, and other online environments.
A friend or community member who tells you about an investment opportunity may not know it is a fraud and may have invested themselves, so know the warning signs. To avoid scams look out for high investment returns, promises of false riches, high-pressure sales tactics, short deadlines to invest, and pressure to send payments abroad or to unknown individuals or entities—these are all hallmarks of fraud.
In the SEC video, Joe and his friend learn that when someone offers you an investment opportunity, it’s best to verify the investment professional is registered, research the investment, keep records about the investment and your communications, and report potential investment fraud to the SEC.
Click to Empower and Protect Your Community
The SEC’s Investor.gov website has free, easy-to-use online tools and resources for investors. You can research certain companies and investment products on the SEC’s EDGAR database, which provides free access to corporate information.
Questions? Call the SEC’s Office of Investor Education and Advocacy (OIEA) at 800.732.0330, access sec.gov/oiea/QuestionsAndComments.html, or email help@sec.gov; and follow OIEA’s social media at investor.gov/follow-us. Remember, taking the time to learn more about an investment, and the person offering it, may save you or a member of your community from online investment scams.
This article was provided by the U.S. Securities and Exchange Commission (SEC). The SEC disclaims responsibility for any private publication or statement of any SEC employee or Commissioner. This article expresses the authors’ views and does not necessarily reflect those of the Commission, the Commissioners, or other members of the staff.
