TDCI’s Securities Division Stresses Investor Education as Technology Changes Investing

NASHVILLE – As part of World Investor Week 2025 (Oct. 6- 12), the Tennessee Department of Commerce & Insurance’s (TDCI) Securities Division is joining the North American Securities Administrators Association (NASAA) to raise awareness about the importance of investor education and protection as technology rapidly changes the face of modern investing.  

Emerging technologies and innovation are allowing investors an unprecedented array of choices and opportunities to grow wealth and financial security through investing. New and developing technologies like artificial intelligence (AI); digital platforms incorporating social media; mobile trading apps; robo-advisers; and crypto assets can make saving and investing more engaging.  At the same time, unfortunately, numerous fraudulent investment schemes—including relationship investment scams among others— have affected investors locally and worldwide.  

“As this period of rapid innovation makes investing easier for Main Street investors, it’s important to remember that scammers and bad actors can use those advances in their favor, too,” said TDCI Assistant Commissioner for Securities Elizabeth Bowling. “We encourage investors to become educated in the new technologies, ask questions from anyone presenting an investment opportunity,  and learn some of the common red flags of frauds or scams. Tennesseans should remember that our team is here to assist investors and answer questions they may have about securities.” 

When investing, remember the following tips that can help consumers avoid falling prey to scams and fraud.  

Digital investing tools make investing more accessible than ever. As an investor, you should understand how these tools work as well as your financial goals and risk tolerance.

• Apps and online investing capabilities have made account monitoring and trading more accessible and might involve lower costs. Some apps and online accounts, however, might use entertaining, game-like interfaces and notifications that can encourage over-trading and might also give you access to complex investment products. Make sure you fully understand these products and keep your financial goals and risk tolerance top of mind when making investment decisions. 
• Automated digital investment advisory services, or “robo-advisers,” use computer algorithms to build and manage a personal investment portfolio based on an investor’s inputs about financial goals and risk tolerance. While they might make putting together an investment plan easier and more accessible, these services rely on information that you provide, and some of these tools are more thorough than others in terms of the level of detail used to build a custom plan.  
• Make sure the robo-adviser and the investment portfolio it puts together for you are a good match for your financial needs and goals and continuously monitor your investment portfolio to ensure it remains a good match. 

Protect your mobile device and online investment accounts from cyber fraud and hacking by following the tips at Protecting Your Online Investment Accounts from Fraud.

• AI is in the news as an investment opportunity in terms of its growth and potential. It also has been suggested as a tool investors can use to make better investment choices. Be cautious of AI claims, promoters and platforms. 
• Companies involved in the field of AI might be appealing investment opportunities. Before investing, carefully review the disclosures that companies make about their businesses. Use the SEC’s EDGAR database to access disclosures for public companies. 
• AI might help with investment decision making but be cautious using AI-generated This information might rely on data that is inaccurate, incomplete or misleading. For example, it could be based on false or outdated information about financial, political or other news events. Or it could draw from false or misleading information that was disseminated to try to manipulate a stock’s price (either positively or negatively). 
• Numerous unregistered and/or unlicensed individuals, firms and online investment platforms promote AI trading systems that make unrealistic claims like, “Our proprietary AI trading system can’t lose!” or “Use AI to Pick Guaranteed Stock Winners!” In reality, these are often investment schemes run by scammers seeking to leverage the popularity of AI. 

Questions? TDCI’s Securities Division can be reached at (800) 863-9117 or (615) 741-2947 (Monday – Friday, 8:00 a.m. - 4:30 p.m. Central Time), by email at securities.1@tn.gov, or visit us online. 

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