U.S. regulators are warning investors about “spoof” websites that aim to impersonate the sites of legitimate firms.
The U.S. Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy issued an alert on Wednesday to warn investors about spoof sites and online ads hawking phoney investments, such as certificates of deposit (CDs).
The alert said that “spoofed” websites — which often use web addresses that are similar to legitimate firms’ websites, or use legitimate-sounding names — may be used to trick investors into buying bogus investments.
“Investors should be extremely cautious when purchasing CDs from sites found only through internet searches,” the SEC warned.
It noted that spoofed websites often carry red flags of fraud, such as offering high interest rates and no penalties for early withdrawals; offering only one type of product; imposing high investment minimums of US$200,000 or more; and requiring investors to wire funds offshore, or to an account with a different name.
The alert called on investors to be skeptical and do additional research before buying products they find online.