Relationship Investment Scams – Starts With “Hello,” But Could End With Saying “Goodbye” to Your Money

By Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy

“Hey! Are we still meeting @ 5 tmrw?” 
“So sorry, but I’m going to be late for lunch” 
“Hi Alex – is this still your number?”
“What’s up? how r u”
“I love your profile!” 

You may have received text messages like these from someone you don’t know or a number that’s not saved in your mobile phone or a message in one of your social media accounts. Is it a case of a mistyped number or someone being friendly on social media? Maybe … but it could also be the start of a relationship investment scam. 

How the Scam Works

In this type of scam, a stranger connects with you on social media or through a messaging or dating website or app. Or a random person might text you pretending to be an old friend. They may even send you a message that seems intended for someone else, hoping you’ll respond out of politeness. After you begin to communicate with the stranger, they might offer financial advice or express romantic interest. But what they’re also offering is someone who wants to talk to you, someone who wants to form a connection. 

The scammer often spends months building trust - through friendship, romance, or an offer to help achieve financial goals - before they begin to defraud you. They might even suggest meeting in person but come up with plausible excuses for why it never happens. 

Once they’ve established a friendship or relationship, scammers might offer investing advice or suggest you use the financial adviser or trading platform they use. No matter how trustworthy someone might seem, don’t make investment decisions based on the advice of anyone who makes unsolicited contact with you online, through an app, or text message. Do your own independent research and ask questions.

What sets this type of scam apart from a classic romance scam is that these scammers aren’t asking you for money directly. Instead, they’re asking you to invest your money, often in complicated schemes that turn out to be fake. The scammer may show you what appears to be returns on your “investments” on what looks like a legitimate investment app or website. You may even be able to withdraw money at first. But eventually, the scammer steals your money. Most of these scams are operated internationally, with very little chance you’ll ever see your hard-earned money again. 

Protect Yourself

Don’t share any information relating to your personal finances or identity (including your bank or brokerage account information, crypto wallet, tax forms, credit card, Social Security number, passport, driver’s license, birthdate, or utility bills) with anyone you don’t know who contacts you online, on a social media platform, or through text message. Be wary of unfamiliar investment websites or apps.

If you think you may be caught up in one of these types of scams, consider trying to withdraw your money. If you can’t withdraw your money, or if the individual tells you to pay a “tax” or “transaction fee” in order to access your funds, it’s most likely a scam. Stop communicating with the individual immediately, and don’t give them any more money. 

Most importantly, if you receive an email or text message from a person, number, or email address you don’t know or recognize, it’s a red flag of fraud — especially if the message is vaguely worded or appears aimed at someone else. Don’t respond. Instead, ignore or delete it, and say “goodbye” by blocking these senders from your phone or messaging app.

For more information about relationship investment scams, visit Investor.gov/RelationshipScams. Be sure to check out our Investor Alerts and Bulletins on a regular basis so you can be aware of the latest types of investment scams and how to avoid them. Visit Investor.gov for more information about saving and investing. To report securities fraud, go to sec.gov/tcr. 

Note: Director’s Take articles are written in a short, non-legalese format intended to provide you with tips and information on timely investment topics that are important to you. You can subscribe to receive Director’s Take articles or find our latest article on the Director’s Take spotlight page.

This article is provided in the author’s official capacity as the Securities and Exchange Commission’s Director of the Office of Investor Education and Advocacy but does not necessarily reflect the views of the Commission, the Commissioners, or other members of the staff.