Be Afraid Of Impostors, SEC's Warning

The Securities and Exchange Commission is warning investors and financial services firms about con artists who may use the names of actual SEC employees to mislead potential victims. In some instances, investors in the U.S. and abroad have been tricked

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The Securities and Exchange Commission is warning investors and financial services firms about con-artists who may use the names of actual SEC employees to mislead potential victims.

In some instances, investors in the U.S. and abroad have been tricked into revealing private information, giving fraudsters access to their brokerage accounts, and even sending money and other assets to imposters.

In other instances, unknown individuals have attempted to impersonate SEC examiners to gather confidential information from broker-dealers and investment advisers. Imposters have contacted firms by telephone, identified themselves as members of the SEC staff, and demanded immediate access to the firm’s records, sometimes claiming to be conducting an “emergency” examination.

Investors should be aware that the SEC never makes or endorses investment offers or participates in money transfers. Nor does the SEC send e-mails asking for detailed personal information, or financial information such as PIN numbers.

“Investors should be especially wary, in these turbulent times, of any unsolicited investment offer, and should always verify the credentials of the individuals making the offer,” says Kristin J. Kaepplein, director, Office of Investor Education and Advocacy, SEC.

“If contacted by someone claiming to represent the Securities and Exchange Commission and vouching for investments, it’s a scam. The SEC never endorses or participates in investment offers.”

L.D.

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