The U.S. Securities and Exchange Commission (SEC) has issued an updated investor alert that warns fraudsters are impersonating SEC officials and using fake subpoenas, among other tactics, in an effort to deceive investors.
Specifically, the SEC cautions that it has become aware of “fraudulent communications, including official looking documents such as bogus subpoenas” that purport to be from the SEC.
The fake documents demand money from victims for fictitious securities law violations. The SEC’s alert stresses that the regulator only seeks money as a penalty, or disgorgement, as part of its formal enforcement process.
In addition, the alert reminds investors that, as with past impersonator scams, the SEC, “does not endorse investment offers, assist in the purchase or sale of securities, or participate in money transfers.” Nor does the regulator seek detailed personal and financial information in unsolicited communications.
“It’s not hard to figure out who the real regulators are and how you can contact them. You’ll find a list of international securities regulators on the website of the International Organization of Securities Commissions (IOSCO) and a directory of state and provincial regulators in Canada, Mexico, and the U.S. on the website of the North American Securities Administrators Association (NASAA),” the SEC alert warns. “If someone encourages you to verify information about a deal with an entity that doesn’t appear on these lists, you should be wary.”