Technology and Digital Finance: World Investor Week 2024 — Investor Bulletin

The SEC’s Office of Investor Education and Advocacy (OIEA), the Commodity Futures Trading Commission’s (CFTC’s) Office of Customer Education and Outreach, the Financial Industry Regulatory Authority (FINRA), the North American Securities Administrators Association (NASAA), the National Futures Association (NFA), and the Securities Investor Protection Corporation (SIPC) are issuing this Investor Bulletin to provide investors with information for World Investor Week 2024, a global campaign promoted by the International Organization of Securities Commissions (IOSCO) to raise awareness about the importance of investor education and protection.

Emerging technologies like artificial intelligence and crypto assets, and digital platforms like social media and mobile trading apps, are increasingly influencing how people invest. As you navigate the world of digital investing, it is important to understand how bad actors might exploit these technologies to conduct investment scams. It also remains important to do your own research and make investment decisions with your long-term investment plan in mind.

While emerging technologies provide new opportunities for investors, they also create opportunities for bad actors.

  • Bad actors use the hype around new technological developments, like artificial intelligence (AI) and crypto assets, to lure investors into scams. They might use catchy buzzwords or claim to be a leader in an emerging technology. 
  • Scammers can use AI technology to clone voices, alter images, and create fake videos to spread false or misleading information. They might use AI-generated content to impersonate someone you know or create realistic looking websites promoting fake investments. 
  • Do not trust someone who pressures you to invest right away or promises big returns with little or no risk. These types of behaviors can be red flags of fraud. There is no such thing as high guaranteed returns, and every investment involves risk. See other ways to spot scam sites or trading platforms.
  • Resist getting caught up in the fear of missing out (FOMO) on a purported investment opportunity that seems new or cutting-edge. Instead, make investment decisions in consideration of your long-term investment plan. Create your plan based on your risk tolerance and investing time horizon, and consider the benefits of asset allocation and diversification.

Social media exposes investors to an abundance of investment information — and misinformation. 

  • As investors increasingly turn to social media to research opportunities, it has become saturated with financial content, including from celebrities or other well-known personalities, people who might or might not know much about finance or investing, and outright charlatans. 
  • Just because a celebrity or “finfluencer” (financial influencer) endorses an investment on social media does not mean it is legitimate or appropriate for all investors. They do not know your personal financial situation, they might not fully understand the investment, or they might be getting paid to promote the investment. Like anyone, celebrities and “finfluencers” can be lured into investment scams.
  • Just as you would not make investment decisions based solely on advice from someone famous, be skeptical of following the investment strategies you see on social media. For example, if someone you follow for health- or travel-related tips starts doling out investment tips, ask yourself: “Why is this person endorsing this investment, and does it fit in my financial plan?” 
  • Social media allows scammers to easily post inaccurate, incomplete, or misleading information while hiding their identities. They might make up credentials, create fake profiles, or impersonate legitimate sources. Social media can also make it look like many people are buying an investment when that is not the case. 
  • Social media also allows bad actors to reach out to you directly. They might try to build a friendship or romantic relationship with you to gain your trust, then convince you to send money before ultimately disappearing with your funds. 
  • Do not invest money based on advice from someone you have solely met online or through an app. Do not share with them any information relating to your personal finances or identity. Recovering money from fraudsters can be nearly impossible because they can hide their identities, quickly send your money overseas, and hide the trail of funds.

Digital investing tools make investing more accessible than ever, but they can encourage investing behaviors that put your money at increased risk.

  • While mobile trading apps and online investment accounts can be appealing because they may be marketed as easy-to-use and low-cost, some of these services can put your money at increased risk. For example, they might use entertaining, game-like interfaces and stock notifications that can encourage over-trading. They might also give you access to complex or high-risk investment products that might be inconsistent with your investment goals and/or carry a higher risk of loss than other investment products.
  • Before deciding to use a mobile trading app or online investment account, carefully consider whether its features make sense for your needs. For example, if you plan to buy and hold mutual funds for the long-term, consider whether you need features like daily notifications or access to complex alternative investments (e.g., non-traded REITs or crypto assets).
  • Protect your mobile device and online investment accounts from digital fraud and hacking by following the tips at Protecting Your Online Investment Accounts from Fraud.

Crypto asset investments can be exceptionally risky and volatile.

  • The risk of loss in transactions involving crypto assets remains significant. Only invest money in crypto assets that you can afford to lose entirely. Think about your long-term investment plan and how much of your overall portfolio, if any, should be allocated to these types of investments.
  • Crypto asset investments might lack basic investor protections, such as disclosure of key information about the investment. Entities and individuals offering crypto asset investments and services might not be complying with applicable law. Crypto assets offered and sold as securities held by a securities broker may not be protected by SIPC if the broker fails and is liquidated.

Before making any investment, take the time to do your own research.

  • Before investing in a company, review the disclosures it makes and assess its promotional campaign. You can find public company disclosures through the SEC’s EDGAR database. If the company appears more focused on attracting investors through promotions than on developing its business, consider that a red flag.
  • Check that anyone offering or selling you an investment—whether in person, online or through an app—is licensed or registered. You can do this by using the free and simple search tools on Investor.gov, BrokerCheck, and BASIC. You might also contact your state or provincial securities regulator. When investing through a securities broker-dealer, verify that it is a member of SIPC at www.SIPC.org. 
  • Verify that an investment professional is who they say they are. For example, contact the professional using a phone number or website listed in the firm’s Client Relationship Summary (Form CRS), a form that your adviser or broker is required to deliver to you and that you can find using the search tool on Investor.gov. 

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If you have questions about your investments or your investment professional, or want to report possible misconduct, you can contact your state securities regulator. You can call the SEC’s investor assistance line at (800) 732-0330. You can also report a problem concerning your investments or report possible securities fraud to the SEC, or by emailing [email protected]. Report commodity or derivative-related complaints to the CFTC. For a derivatives-related complaint (involving futures, options on futures, forex or swaps) involving a pending, current, or former NFA Member (as displayed in BASIC), file with NFA.

Follow the SEC and sign up for email updates on investing-related topics and news.

Additional Resources

NFA’s BASIC

CFTC Learn & Protect

FINRA For Investors

NASAA Investor Education

NFA Investor Education

Futures Fundamentals

SIPC For Investors


This Investor Bulletin represents the views of the staff of the Office of Investor Education and Advocacy. 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 Investor 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.