Beware of fake investment offers this Valentine’s Day: SCC Virginia

RICHMOND, Va. (WRIC) -- The State Corporation Commission (SCC) is warning Virginians to be on guard against online strangers who offer fake investment opportunities this Valentine's Day.

The SCC's Division of Securities and Retail Franchising is encouraging Virginians to be cautious of romance scams and what is called “relationship investment scams,” especially during this Valentine's Day weekend.

These are fast-growing types of fraud that combine emotional manipulation with false investment opportunities.

Relationship investment scams are a particularly dangerous romance fraud that has caused a reported loss of over $1 billion. In an annual survey done by the North American Securities Administrators Association, these types of scams have constantly ranked as the most serious risk with investors across the United States.

Relationship scams most often start on dating apps, social media, messaging apps or through "wrong number" text messages.

Scammers will use fake profiles, photos, videos and artificial intelligence (AI) videos in order to sound and appear more credible. Once they make contact, scammers will begin sending messages to build a relationship and connection before asking for money.

In some cases, scammers have reported that they have made money through cryptocurrency, precious metals or foreign currency due to inside help or knowledge.

Victims are told by scammers that it is easy to invest and encourages them to participate. They are then directed to fake trading platforms that are operated by organized crime groups.

“This Valentine’s Day, make sure Cupid is aiming for your heart and not your wallet,” said Doug Joyce, director of the SCC’s Division of Securities and Retail Franchising, in a press release. “Romance and relationship investment scams prey on trust and emotion, often leaving victims with devastating financial losses. If someone you meet online starts discussing investments, promises easy money with little or no risk, or pressures you to act quickly, those are clear warning signs.”

Joyce added that checking with the Division before you invest can help put a stop to a scam "before it breaks both your heart and your bank account."

In 2024, the SCC division conducted 149 investigations into these relationship scams, 12 of which led to civil enforcement actions. As well as two had involved cryptocurrency, and 33 had fraud involved, per the release.

Joyce offered these tips in order to protect yourself from these scammers:

• Be skeptical if a new love interest begins to ask for money or provide investment advice
• Never send money to a person that you have not met in person
• Make sure to verify identity, don't just rely on photos or conversations online
• Report scams or suspicious activity to the SCC's division, the Federal Trade Commission (FTC) or local law enforcement

To learn more, contact the SCC's Division of Securities and Retail Franchising at 804-371-9051 or visit the Division's website here.

Additionally, visit the North American Securities Administrators Association's website here for more resources, scam warnings and ways to help protect yourself and others from these scams.