JACKSON, Miss. – Secretary of State Michael Watson urges Mississippians to be aware of the increasing risks of investment scams and the consequences they have on their victims.

"Our office has continued to see an uptick in securities-related scams, and we encourage Mississippians to do their due diligence to research any entity requesting money. With the ever-changing landscape of technology including cryptocurrency and artificial intelligence, we must remain vigilant," said Secretary Michael Watson.

Securities professionals warn of the heightened risk of the following scams:

• Affinity Fraud Scams
  • Affinity fraud, or "pig butchering," occurs when scammers build relationships with potential targets to gain trust. Over time, scammers are able to steal the victim's money because it appears as if the investment institution is valid. These scammers use religious affiliation, relationship status, or common interests to establish these connections. Affinity fraud scammers will often first reach out via text, email, social media, or a dating application. Once they have gained trust with victims, scammers redirect the victim to a private messaging service where the relationship grows, and scammers introduce victims to online investment opportunities while applying pressure. 
• Gift Card Scams
  • Gift card scams consist of a person impersonating government agencies, financial institutions, or businesses to request an urgent payment with a gift card to avoid legal action. 
• Cryptocurrency Scams
  • Cryptocurrency scammers impersonate new or established businesses offering fraudulent coins or tokens while promising high returns. They may utilize social media ads, news articles, or websites to appear legitimate. Investors pay scammers what they believe are upfront fees for investing in cryptocurrency. However, the money invested goes directly into the scammer's pocket.

Mississippians are encouraged to be mindful of these scams and exercise caution with investment opportunities from unknown sources. Be on the lookout for warning signs including:

• Messages from a wrong number/unsolicited contact
• Relationship building with someone without meeting the person
• Pressure to invest in cryptocurrency
• Matches on dating sites that start "love bombing"
• Emotional manipulation used to build trust
• Investments tied closely to religious beliefs or groups
• Instruction to switch from one online platform to another

If an individual claims to be a financial broker or advisor, Mississippians should always verify his or her status by contacting the Secretary of State's Office or using the online search tool.

For questions or more information, please contact the Securities Division at (601) 359-1334 or email Securities.CustomerService@sos.ms.gov.