US SEC’s FY2026 OIAD report flags rising fraud risks in crypto, private investments, and China-based entities, urging  transparency, clearer disclosures and stronger safeguards for retail investors

It underscores the need to protect retail investors from misleading disclosures, liquidity traps, and social media-driven scams—issues frequently reported to the Ombuds office. The SEC plans to enhance investor testing through the THRIVE panel, scrutinize SRO rule changes for fraud exposure, and leverage its Crypto Task Force to examine deceptive practices in lending, staking, and custody….