SEC Investor Alert: Investment Scams Linked to Texas Floods

July 15, 2025 The SEC’s Office of Investor Education and Assistance (OIEA) urges investors to be vigilant for investment scams related to natural disasters, including the recent Texas floods.

Fraudsters often seek to use disasters and other events, such as floods, wildfires, and hurricanes to lure victims into investment scams. These frauds may directly target individuals receiving money from insurance companies or other sources.

These investment frauds can take many forms. For example, fraudsters may:

• Ask you to make “investments” in companies supposedly involved in cleanup, repair, and recovery efforts;
• Say your “investment” will not only make you money, but benefit victims of the disaster; or
• Promote the stock of companies that supposedly will reap huge profits from recovery and cleanup efforts, and then sell their own shares of the stock at the inflated price in what is called a “ pump-and-dump ” scam. Fraudsters may attempt to reach individuals on a large scale through unsolicited emails, on social media, or by text or telephone. They also may falsely claim to be affiliated with state and federal governments or large, well-known companies. Learn more about impersonation schemes on Investor.gov.

Be Skeptical and Ask Questions

Be skeptical if you are approached by someone touting an investment opportunity related to natural disasters. When considering any investment, one of the best ways to avoid investment fraud is to ask questions.

• Ask the person if they are licensed, and if the investment is registered with the SEC or with a state regulator.
• Use Investor.gov’s free and easy search tool to check the background, including license and registration status, of anyone who tries to sell you an investment.

Protect Your Money

Take a close look at your entire financial situation before making any investment decision. If you received a large payment or lump sum to assist with recovery efforts, read our publication Making the Most of Your Lump Sum Payment | Investor.gov. Remember, your payment may have to help finance your recovery as well as last you and your family for a long time.

Additional Resources

• Build Wealth Over Time Through Saving and Investing | Investor.gov
• Kerr County Texans Affected by Severe Storms and Flooding July 2 and Continuing Can Apply for Possible FEMA Assistance | FEMA.gov Report possible securities fraud to the SEC online at www.sec.gov/tcr.

Call OIEA at 1-800-732-0330, ask a question using this online form, or email us at Help@SEC.gov.

Visit Investor.gov, the SEC’s website for individual investors.

Receive Investor Alerts and Bulletins from OIEA by email or RSS feed.

This Investor Alert represents the views of the staff of the Office of Investor Education and Assistance. It is not a rule, regulation, or statement of the Securities and Exchange Commission (“Commission”). The Commission has neither approved nor disapproved its content. This Alert, like all staff statements, has no legal force or effect: it does not alter or amend applicable law, and it creates no new or additional obligations for any person.

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