SEC launches Retail Fraud Working Group to strengthen investor protection

The U.S. Securities and Exchange Commission (SEC) has established a new Retail Fraud Working Group to enhance its efforts to detect, investigate, and prosecute fraud targeting retail investors.

The new unit, housed within the SEC's Division of Enforcement, will focus on misconduct affecting everyday investors, including investment offering frauds, pump-and-dump schemes, market manipulation, and violations of fiduciary and customer obligations by investment advisers and broker-dealers.

The working group will also support proactive case generation by leveraging staff, data, and technology across the Commission. In addition to enforcement activities, it will coordinate with domestic regulators and international counterparts while working alongside the SEC's Office of Investor Education and Assistance on investor awareness initiatives.

SEC Chairman Paul S. Atkins said the creation of the group reinforces the agency's commitment to investor protection and reflects a renewed focus on the core mission of the enforcement program.

David Woodcock, Director of the SEC's Division of Enforcement, said the initiative will dedicate additional resources to identifying retail-focused fraud, strengthening regulatory partnerships, and using technology to detect and stop misconduct before more investors are harmed.

The Retail Fraud Working Group will be co-led by Kate Zoladz, Deputy Director (West) of the Division of Enforcement, and Kim Frederick, Assistant Director of the Division's Asset Management Unit.