The FBI and SEC Provided Guidance Against Imposter Scams

The FBI and SEC have come with new guidance for investors to fight against financial scams. Users are being suggested to reject and report fraud if they want to protect their business from scams and save their money from being paid to an imposter. 

Among various sectors, consumer markets have taken a major hit as stringent lockdowns have brought economic activity to a standstill. 

Nowadays, cyber-attackers are employing highly sophisticated tricks to carry out financial scams activity. According to the FBI’s Criminal Investigative Division, and the United States Securities and Exchange Commission, fraudsters always try to mock as they are a real broker or investment adviser and trick users. Once a belief has been suspended, the fraudsters can trick investors into surrendering more information. 

The FBI and the SEC said, that cybercriminals are using very advanced technology for becoming real investors including fake social media profiles, fake websites that look exact to those of legitimate firms and are hiding their actual locations. 

In addition, cybercriminals have been falsifying legitimate documents, like public reports with a real identity and Central Registration Depository (CRD) numbers but unorganized firm names. Fraudsters who are tricking investors reportedly used poor grammar and had spelling errors. Besides the FBI and the SEC, a similar warning had been issued by FINRA last week. 

“The doctored BrokerCheck report was emailed to potential “clients” using the name and CRD number of a registered investment professional—but with a company that is not registered as a broker-dealer with FINRA…” 

“…The solicitation included other documentation and a request for investors to respond with a photo of their driver’s license and other personal information…”, the group wrote. 

•According to the FBI and SEC recommendation if someone is claiming that investment is legitimate then users should research their name on Investor.gov, and verify thoroughly. 

• Be aware of fake offers like high investment returns 

•Before going ahead with any firm, investors are advised to use FINRA’s BrokerCheck to verify. 

•The FBI and SEC also highlighted that most licensed and registered investment organizations don’t allow investors to use credit cards or cryptocurrencies to invest, so you are advised to think twice before making investments. 

•At the of payment, investors are advised not to send money directly without verifying the recipient. Also, one must not send personal data including date of birth, driver’s license number, or any other official documents.