Protecting Your Investments: Staying Ahead of Online Fraud

Your nest egg represents decades of hard work, sacrifices, and careful planning—it’s not just money, it’s your peace of mind for a secure financial future. And while safeguarding your retirement savings from losses due to poor performance or management is a top priority for investors, so should be safeguarding it from losses due to fraud.
The trust you can place in your investments is increasingly under threat as online fraud becomes more sophisticated. Advances in technology, including artificial intelligence (AI), are making scams easier for bad actors to perpetrate and harder for investors to detect.
From fake emails offering “can’t-miss opportunities” to fraudulent websites mimicking reputable firms, bad actors are using increasingly sophisticated tactics. With AI, they can now create fake documents, impersonate voices, and even stage convincing video calls—all aimed at gaining your trust and access to your accounts.
Protecting Yourself
Being alert and aware of these deceptive acts is more important than ever when it comes to protecting your hard-earned money. Taking proactive steps can help you guard against fraud. Take a look at some of the best practices to keep you safe:
- Verify before you trust: If an offer or communication seems too good to be true, it likely is. Contact your financial institution directly to confirm its authenticity.
- Stay informed: Regularly check your investment accounts and review statements for any unusual activity.
- Beware of phishing: Be cautious when clicking on links or providing sensitive information online. Scammers often use fake emails or websites to steal your data.
- Educate yourself: Learn about common scams and how to avoid them. Many financial organizations provide resources to help you stay updated.
Reporting Fraud
If you suspect fraudulent activity involving your investments, don’t hesitate to act. Report the incident to your financial institution and alert regulatory authorities, such as the Securities and Exchange Commission (SEC). By reporting scams, you protect yourself and other investors who could fall victim to these malicious scams.
As SFF advocates for policies that support secure investments, we’re also committed to empowering you with the tools and information you need to safeguard your financial future.
Together, we can ensure that more Americans achieve their financial goals without falling prey to fraudulent schemes.