FINRA has appointed Christine Kieffer as Senior Vice President of its Office of Investor Education and President of the FINRA Investor Education Foundation, effective immediately. The appointment formalizes a role Kieffer had held on an interim basis since April and places a 22-year FINRA veteran in charge of investor education strategy as social media, artificial intelligence, and online investment schemes create new risks for retail investors. Kieffer will oversee FINRA's investor education strategy while directing the Foundation's research and education programs covering financial capability, investing, and fraud prevention. The move comes as FINRA increasingly treats investor education as part of its response to fraud rather than as a separate financial literacy initiative. Marcia Asquith, Executive Vice President of Board and External Relations at FINRA, said Kieffer combines deep investor protection expertise with a vision for educating and engaging investors in a dynamic and rapidly changing environment.
Social Media Users Face Higher Fraud Losses Despite More Research
Kieffer takes charge as FINRA Foundation research shows that a growing share of retail investors depend on social media personalities and online platforms when making investment decisions. An April 2026 Foundation study found that 29% of retail investors used social media or message boards to inform investment decisions. The proportion increased to 60% among investors aged between 18 and 34. Separately, 26% of respondents said they had acted on recommendations from a social media personality, rising to 61% among investors under 35.
The research identified a gap between confidence and measurable investment knowledge. Social media users answered 42% of a 10-question investment knowledge test correctly, compared with 47% among non-users. Finfluencer followers scored 41%, also below the 47% recorded by investors who did not follow online personalities for investment recommendations.
Despite the lower scores, social media users and finfluencer followers were more likely to rate their own investment knowledge highly. The Foundation said the combination indicated overconfidence, which can make investors more receptive to inaccurate information, unrealistic returns, and fraudulent offers.
The difference became clearer among investors who had been targeted by fraud. Between 68% and 69% of social media users and finfluencer followers who encountered an attempted fraud reported losing money. The equivalent range among non-users and non-followers was between 26% and 29%.
Social media investors were not necessarily conducting less research. They consulted an average of 7.6 information sources, compared with four among non-users, and were more likely to check the background of a financial professional. The higher reported fraud losses therefore point to a problem that cannot be solved simply by encouraging investors to search for more information.
Half of Investors Would Accept Fraudulent 25% Risk-Free Return Offer
Another FINRA Foundation study of US investors demonstrated how difficult fraud recognition remains even when an offer contains obvious warning signs. Respondents were asked whether they would invest in an opportunity promising a guaranteed, risk-free annual return of 25% for five years. Half said they would invest, while 30% were unsure. Only 21% rejected the offer outright.
The result was particularly concerning because guaranteed returns and claims that an investment carries no risk are standard fraud indicators. Investors under 55, those with fewer than 10 years of experience, and those without a college degree were less likely to reject the fictional offer.
The same research found that 56% of investors rated their own knowledge highly, despite limited improvement in their performance on objective investment questions. Together, the findings show why FINRA's education work is increasingly focused on investor behavior and scam recognition rather than only explaining products, fees, and portfolio diversification.
FINRA Expands Fraud Prevention Tools Through Regulatory Notice 26-02
The appointment follows a broader push by FINRA to strengthen how brokerage firms identify and interrupt suspected fraud. In Regulatory Notice 26-02, published in January, FINRA requested feedback on changes intended to help member firms protect senior investors from financial exploitation and all customers from fraud. The proposals included measures designed to improve the use of trusted contacts and give firms more flexibility when placing temporary holds on transactions or withdrawals involving suspected exploitation.
FINRA has also expanded its work on account takeovers, social engineering, and AI-assisted scams. Its Financial Intelligence Unit evaluates emerging retail fraud schemes and imposter websites, while its Cyber and Analytics Unit runs exercises designed to improve firms' ability to respond to cyber-enabled fraud.
Investor education supports those efforts by addressing the period before money reaches a fraudulent scheme. Enforcement can punish registered firms and individuals after misconduct occurs, while transaction holds may interrupt suspicious transfers. Education aims to help investors identify warning signs before they authorize the payment.
Kieffer Brings 22 Years of FINRA Fraud Prevention Experience
Kieffer has represented FINRA and the Foundation in Congressional hearings, public forums, and media appearances and has published research on financial capability and investment fraud. Before joining FINRA, she worked at Sallie Mae and Nasdaq.
She also serves as Chair of the Committee Against Financial Exploitation for the National Adult Protective Services Association, connecting her FINRA responsibilities with wider efforts to prevent financial abuse of older and vulnerable adults.
Jonathan Sokobin, Chief Economist at FINRA and Chair of the FINRA Foundation Board, said Kieffer had been involved in shaping the Foundation's work since its earliest days. "Few people understand the Foundation's mission and impact as deeply as Christine. Since the Foundation's earliest days, she has helped shape research, education and investor protection initiatives that have benefited millions of Americans."
Kieffer's appointment does not represent a new enforcement power or regulatory rule. It does, however, place an executive with extensive fraud prevention experience at the head of programs that are becoming more relevant as retail investors encounter financial promotions through TikTok, YouTube, Instagram, private messaging groups, and AI-generated content.
FAQ
What role did FINRA appoint Christine Kieffer to?
FINRA appointed Christine Kieffer as Senior Vice President of its Office of Investor Education and President of the FINRA Investor Education Foundation, effective immediately. The appointment formalizes a role Kieffer had held on an interim basis since April.
How many retail investors use social media for investment decisions according to FINRA Foundation research?
An April 2026 FINRA Foundation study found that 29% of retail investors used social media or message boards to inform investment decisions. The proportion increased to 60% among investors aged between 18 and 34, and 26% of respondents said they had acted on recommendations from a social media personality, rising to 61% among investors under 35.
What percentage of investors would accept a fraudulent 25% risk-free return offer?
A FINRA Foundation study found that half of respondents said they would invest in an opportunity promising a guaranteed, risk-free annual return of 25% for five years, while 30% were unsure. Only 21% rejected the offer outright, despite guaranteed returns and risk-free claims being standard fraud indicators.
