Investor Alert: Relationship Scams and Impersonation Fraud

SEC Investor Alerts & Bulletins

Published March 31st, 2026

Detected March 31st, 2026

Summary

The SEC's Office of Investor Education and Assistance issued an Investor Bulletin on March 31, 2026 warning investors about relationship investment scams (long cons using friendship or romance to lure victims into fake investments) and impersonation schemes (fraudsters posing as legitimate investment professionals or registered firms). The bulletin, issued during Financial Literacy Month, directs investors to existing resources on Investor.gov covering asset allocation, diversification, tax-advantaged accounts, and fee disclosures. The bulletin explicitly states it represents staff views and is not an SEC rule, regulation, or statement.

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The SEC's Office of Investor Education and Assistance published this Investor Bulletin on March 31, 2026 (Financial Literacy Month) to alert investors about two prevalent fraud types: relationship investment scams where fraudsters build trust through online friendship or romance before directing victims to fake investments, and impersonation schemes where fraudsters pose as legitimate investment professionals or firms registered with FINRA, state regulators, or the SEC. The bulletin provides links to existing Investor.gov resources on asset allocation, diversification, tax-advantaged accounts (including retirement accounts, Trump Accounts, and 529 Plans), and fee disclosures. The bulletin clarifies it represents staff views and is not a rule, regulation, or statement of the SEC.

This bulletin creates no new legal obligations for regulated entities. Compliance teams at investment firms and broker-dealers may consider sharing these educational resources with clients as part of fraud prevention outreach. There are no compliance deadlines, filing requirements, or penalties associated with this informational bulletin.

Source document (simplified)

March 31, 2026 As part of Financial Literacy Month, the SEC’s Office of Investor Education and Assistance is issuing this Investor Bulletin to highlight important information on Investor.gov to help you make informed investment decisions and avoid investment fraud. If you have questions, contact us through our online question form , at help@sec.gov , or on our toll-free investor assistance line at (800) 732-0330. ****

Check out these links on Investor.gov for more information:

Asset Allocation and Diversification

Asset allocation means how you spread your investments across different asset types, such as stocks, bonds, and cash. The best mix for you depends on your personal risk tolerance and investing timeframe. **** Diversification means investing in a variety of assets to lower the overall risk of your investment portfolio. Or more simply, “Don’t put all your eggs in one basket.”

Tax-Advantaged Accounts

Tax-advantaged accounts are financial accounts that offer special tax benefits to encourage saving and investing for specific reasons such as retirement or education. These benefits can include tax deductions (e.g., pre-tax contributions), tax-deferred growth (no taxes until withdrawal), and/or tax-free withdrawals. Some types of tax-advantaged accounts include:

Retirement accounts such as traditional and Roth 401(k)s and Individual Retirement Accounts (IRAs);
Trump Accounts (an account for minors intended to facilitate early investment); and
Education Savings Accounts such as 529 Plans for qualified educational expenses. How Fees and Expenses Affect Your Investment Portfolio

As with anything you buy, there are fees and expenses associated with investment products and services. These fees may seem small, but over time they can have a major impact on your investment portfolio. When choosing an investment or an investment professional, make sure you understand and compare the fees you’ll be charged.

Relationship Investment Scams

Relationship investment scams involve a “long con” where fraudsters build trust through friendship or romance over time and then convince you to put money into phony investments. Fraudsters often initiate contact online or on social media platforms — including professional networking, dating, and messaging websites/apps.

Beware of Fraudsters Impersonating Investment Professionals and Firms

Fraudsters seeking to lure investors into scams may impersonate investment professionals or impersonate firms that are registered with a state securities regulator, the Financial Industry Regulatory Authority (FINRA), or the SEC. Impersonators may go to great lengths to conceal their identities in investment scams.

This Investor Bulletin 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 Bulletin, like all staff guidance, 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.