During World Investor Week (WIW) 2024, which starts today, the Securities and Exchange Commission issued a statement advising investors to be careful in seeking investing information.
The SEC is the national coordinator in the US, partnering with the Commodity Futures Trading Commission (CFTC), Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIC), National Futures Association (NFA), and North American Securities Administrators Association (NASAA) to promote prudent investing.
The SEC states the importance of:
‘”… conducting background checks on investment professionals; monitoring and securing investment accounts; avoiding unsolicited investment pitches; the role of finfluencers (influencers who leverage social media to share information about finances, including investing); and using investing apps. They will also provide information about the latest trends in investment fraud, such as relationship investment scams, which are sometimes referred to by various terms including romance scams, “cryptocurrency” investment scams, financial grooming scams, and others who refer to it as “pig butchering” scams.”
It should be common sense NOT to listen to influencers on social media – especially celebrity endorsers which are little more than informational or paid advertisements.
And if it sounds too good to be true, it probably is.