SEC Unveils Public Service Announcement to Promote Background Checks on Investor.gov
The SEC issued a public service announcement to educate investors on avoiding fraud by using Investor.gov to verify investment professionals, illustrating a fictional scam involving high-pressure tactics and false guarantees like 'no risk' and 'money will double,' with no specific defendant or charges, but over 9 million users have used the site since 2009 and traffic rose 86% since 2016.
The SEC launched a public service announcement (PSA) to combat investment fraud by encouraging investors to use the free background-check tools on Investor.gov before investing. The PSA depicts a fictional fraudster using high-pressure tactics and false claims—such as 'no risk,' 'money will double,' and 'this opportunity won’t last'—to deceive investors, though no real individual or dollar amount is named. The SEC emphasizes that investor education is a critical defense against fraud, noting over 9 million users have accessed Investor.gov since its 2009 launch, with traffic increasing 86% since its 2016 outreach expansion.
The SEC unveiled a public service announcement (PSA) to educate investors on identifying and avoiding investment fraud by using the free tools available on Investor.gov. The PSA portrays a fictional scenario in which a fraudulent advisor uses high-pressure sales tactics and deceptive promises—such as 'you're getting in at the perfect time,' 'this opportunity won’t last,' 'your money will double,' and 'there’s absolutely no risk'—to lure unsuspecting investors. While no real individual, company, or financial loss is named, the PSA serves as a cautionary example of common fraud red flags. The SEC’s Office of Investor Education and Advocacy stresses that most fraudsters are not this easily identifiable, making background verification essential. Since its launch in October 2009, Investor.gov has been used by more than 9 million new users, and traffic increased by 86% after the SEC expanded its outreach program in 2016. The PSA is available in both video and audio formats to maximize public reach and awareness. The SEC continues to prioritize investor education as a core strategy to protect Main Street investors and improve financial decision-making, without pursuing enforcement in this instance.
Extracted insights
- agency director of the sec's office of investor education and advocacy
- person investor.gov traffic
- person Jay Clayton
- person lori schock
- agency sec chairman
- agency Securities and Exchange Commission
- SEC unveiled public service announcement to encourage investors to check investment professional backgrounds
- Investor.gov provides tools and resources to help investors invest wisely and avoid fraud
- Jay Clayton is SEC Chairman
- Lori Schock is Director of the SEC's Office of Investor Education and Advocacy
- Investor.gov launched October 2009
- SEC expanded outreach program in 2016 to include PSAs
- Investor.gov traffic increased 86 percent since 2016
- Investor.gov has been used by more than 9 million new users since October 2009
The Securities and Exchange Commission today unveiled a public service announcement (PSA) to encourage investors to check the background of their investment professional by using the free search tool on Investor.gov before investing. Investor.gov, the SEC’s website dedicated to individual investors, provides investors with tools and resources to help them invest wisely and avoid fraud. “Investor education is an important line of defense against fraud and is critical to our efforts to both protect Main Street investors and improve their financial decision making,” said SEC Chairman Jay Clayton. “Through public service announcements, investor alerts and bulletins, and direct outreach, the SEC will continue to focus on empowering investors.” “It can be hard to spot a fraudster, and Investor.gov’s free search tools can help investors verify that they are dealing with a registered investment professional,” said Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy. “Investors who check the background of their investment professional and use the other tools and resources available on Investor.gov can make more informed investment choices – and better protect themselves from fraud.” The PSA’s storyline involves a couple seeking advice from an alleged investment professional who turns out to be a fraud. At first, the investment professional seems genuine, but as the conversation continues his fraudulent scheme quickly unravels. He uses high-pressure sales tactics – typically a red flag of fraud – to persuade the couple to invest, with statements such as: You are definitely getting in at the perfect time This investment opportunity will not last long I can guarantee that your money will double There’s absolutely no risk to you The SEC's latest PSAs encourage investors to check the background of their investment professional. The PSA stresses that most fraudsters are not this easy to spot and encourages investors to visit Investor.gov before investing. The PSAs are in video and audio format. Additional information on the PSAs can be found here. More than 9 million new users have used Investor.gov since it launched in October 2009. The SEC expanded its outreach program in 2016 to include PSAs to reach and educate more investors. Since that time, the traffic on Investor.gov has increased by 86 percent.
The Securities and Exchange Commission today unveiled a public service announcement (PSA) to encourage investors to check the background of their investment professional by using the free search tool on Investor.gov before investing. Investor.gov, the SEC’s website dedicated to individual investors, provides investors with tools and resources to help them invest wisely and avoid fraud. “Investor education is an important line of defense against fraud and is critical to our efforts to both protect Main Street investors and improve their financial decision making,” said SEC Chairman Jay Clayton. “Through public service announcements, investor alerts and bulletins, and direct outreach, the SEC will continue to focus on empowering investors.” “It can be hard to spot a fraudster, and Investor.gov’s free search tools can help investors verify that they are dealing with a registered investment professional,” said Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy. “Investors who check the background of their investment professional and use the other tools and resources available on Investor.gov can make more informed investment choices – and better protect themselves from fraud.” The PSA’s storyline involves a couple seeking advice from an alleged investment professional who turns out to be a fraud. At first, the investment professional seems genuine, but as the conversation continues his fraudulent scheme quickly unravels. He uses high-pressure sales tactics – typically a red flag of fraud – to persuade the couple to invest, with statements such as: You are definitely getting in at the perfect time This investment opportunity will not last long I can guarantee that your money will double There’s absolutely no risk to you The SEC's latest PSAs encourage investors to check the background of their investment professional. The PSA stresses that most fraudsters are not this easy to spot and encourages investors to visit Investor.gov before investing. The PSAs are in video and audio format. Additional information on the PSAs can be found here. More than 9 million new users have used Investor.gov since it launched in October 2009. The SEC expanded its outreach program in 2016 to include PSAs to reach and educate more investors. Since that time, the traffic on Investor.gov has increased by 86 percent.