SEC Warns Investors About Relationship Scams Starting With Texts

The Securities and Exchange Commission warned investors about relationship-based investment scams that can begin with an unsolicited text message or direct message, with scammers building trust before presenting fake opportunities.

The fraudsters may pose as potential friends or develop an extended relationship with victims through online conversations. After establishing trust, they may introduce an investment opportunity that does not exist or is designed to take the victim’s money.

Victims who send funds may be left without access to their money after the scammers disappear. The SEC’s warning highlights how ordinary digital conversations can be used to establish credibility before an investment pitch is made.

The agency urged the public to remain cautious when investment opportunities emerge through messages or direct messages from people they do not know. The warning focuses on recognizing relationship-building as part of a potential investment scam before funds are transferred.