Online investment fraud cost Americans more than $8.6 billion in 2025, the FBI says. That is over two and a half times the $3.3 billion reported in 2022. Cryptocurrency scams alone made up $7.2 billion.
On July 7 the Securities and Exchange Commission answered with a new Retail Fraud Working Group. The announcement ran five paragraphs. It said the group would use “data and technology” to find possible wrongdoing and build cases, and it gave few details on what would actually change.
What the group will cover
The group’s remit: investment scams, fraud tied to securities offerings, pump-and-dump schemes, market manipulation, and misconduct by brokers and investment advisers. The press release also says it will work with other regulators and run investor education on fraud.
“The working group could generate cases in any area significantly impacting retail investors,” an SEC spokesperson said.
That is a wide mandate. It leaves room for new or growing threats, and for misconduct that looks nothing like a classic scam. Brenda Hamilton, founder and managing partner of Hamilton & Associates Law Group in Boca Raton, Florida, gave an example. Brokers and advisers can hurt customers by failing to disclose important information, charging excessive fees or recommending investments that are wrong for them.
The crypto gap
Coordination with other regulators could matter most on crypto. The agency can go after a crypto scam only when it involves an investment that federal securities law covers. Not every cryptocurrency falls under its authority, so some cases may need action from other federal or state regulators.
The working group is part of SEC Chairman Paul Atkins’ push to return the agency’s enforcement work to what he calls its core mission of protecting investors.
Sources
- Investment Fraud Statistics 2026: $8.65 Billion in US Losses — Pig Butchering, SEC Enforcement, and Recovery Data – Axis Intelligence
- As Investment Fraud Losses Hit $8.6 Billion, The SEC Rethinks A Job It Was Already Supposed To Be Doing
