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SEC counsel outlines how investors can spot scams and report suspected securities violations
Summary
Tom Manganiello of the U.S. Securities and Exchange Commission told listeners on Fairfax County’s Consumer Connection that investors should set goals, vet advisers, watch for red flags including AI-enabled impersonation, and use the SEC’s online form to report suspected securities-law violations.
Susan Jones, branch manager with Fairfax County Consumer Affairs, hosted a Consumer Connection episode featuring Tom Manganiello, senior counsel in the U.S. Securities and Exchange Commission's Office of Investor Education and Assistance. Manganiello summarized the SEC’s investor-protection mission and reviewed steps listeners can take to reduce their risk of investment fraud.
Manganiello said the SEC’s role includes protecting investors, maintaining fair and orderly markets and facilitating capital formation, and he noted the agency produces educational materials and tools such as investor.gov. “The views I express are my own, not necessarily the views of the Securities and Exchange Commission, its commissioners, or employees,” he told the program, adding the discussion did not represent official SEC policy or legal or investment advice.
Why it matters: Manganiello cited Federal Trade Commission data placing investment fraud among the top five fraud types and said reported losses “totaled at least 5,700,000,000,” underscoring the financial risk, especially for older adults who often lose larger sums when victimized.
Practical steps to protect money: Manganiello advised listeners to start by defining financial goals, creating a budget and choosing an appropriate time horizon. He recommended diversification and long-term planning and warned that no legitimate investment should pressure someone to act immediately. “Do not make investment decisions based on the advice of someone who makes unsolicited contact with you,” he said.
Red flags and common scams: The SEC counsel listed common schemes — imposters, pump-and-dump operations and Ponzi schemes — and pointed to recurrent warning signs: promises of guaranteed returns, urgent or high-pressure solicitations and requests for unusual payment methods such as gift cards or peer-to-peer apps. He described a growing form of fraud he called “relationship investment scams,” where perpetrators build trust online or by message over time and then persuade victims to invest in fake opportunities.
Emerging threats from technology: Manganiello warned that advances in artificial intelligence make fake websites, emails and phone calls harder to distinguish from legitimate communications and said scammers can spoof phone numbers to impersonate advisers or even federal agencies.
Vetting professionals and monitoring accounts: For listeners considering professional help, Manganiello urged checking that advisers are licensed or registered and using tools on investor.gov to research backgrounds. He recommended routinely reviewing account statements, asking how advisers are paid and watching for unusual activity.
How to report suspected wrongdoing: Manganiello directed people who suspect securities-law violations, including fraud or market manipulation, to the SEC’s online tips, complaints and referrals form at sec.gov/tcr to submit information confidentially. He reiterated the SEC’s investor resources (investor.gov and help.sec.gov) and the office’s investor assistance helpline (as stated on the program).
Local contact and next steps: Jones closed by directing Fairfax County residents with consumer questions to Fairfax County Consumer Affairs at (703) 222-8435 and fairfaxcounty.gov/cableconsumer. The program emphasized education and reporting as the primary tools for protecting assets.
The episode was a practical primer aimed at helping listeners identify suspicious activity, verify advisers and use official channels to report possible fraud.
