SEC Imposters Cash In on Weary Investors

The Securities and Exchange Commission warned investors Monday about con-artists using the names of actual SEC employees to trick unwitting victims.

I don’t know about you, but I don’t know the names of any SEC employees, and if someone called me claiming to be from the SEC, I’d probably give them about as much credibility as a Nigerian prince.

But apparently investors in the U.S. and abroad have fallen prey to the tricksters, to the point of providing access to brokerage accounts and sent payment to the imposters.

It’s not just individuals who are at risk. Investment advisers have been contacted by fake SEC officers requesting immediate access to private client files for emergency examinations.

They don’t say specifivally, but it seems the SEC is concerned that the scam involves special offers for investments with better than average return. Kristin J. Kaepplein, Director of the SEC’s Office of

Investor Education and Advocacy warns:

“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. 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.”

And like your bank, they don’t send e-mails asking for detailed personal information, or financial information such as PIN numbers. The SEC reminds investors to verify the identity of anyone claiming to represent the SEC. Get their name and ask to call them back. You can verify the information with SEC’s personnel locator at 202-551-6000. You can also report suspicious contacts to the SEC by calling 800-732-0330 or e-mailing: help@sec.gov.

Image Credit: Menage a Moi, Flickr