Security News > 2021 > July > FBI warns investors of fraudsters posing as brokers and advisers
The FBI Criminal Investigative Division and Securities and Exchange Commission warn investors of fraudsters impersonating registered investment professionals such as investment advisers and registered brokers.
The end goal of these broker imposter schemes is to lure their targets into investment scams using spoofed sites, fake social media profiles, cold calling, and doctored documents.
"Fraudsters may falsely claim to be registered with the Securities and Exchange Commission, the Financial Industry Regulatory Authority or a state securities regulator in order to lure investors into scams, or even impersonate real investment professionals who actually are registered with these organizations," the FBI and SEC warned earlier this week.
Investors are advised first to check if those reaching out with investment opportunities are licensed or registered with the Investor.
Guaranteed high investment returns: Promises of high investment returns - often accompanied by a guarantee of little or no risk - is a classic sign of fraud.
Investors are also urged to check the list of Impersonators of Genuine Firms maintained by the SEC, which-although not exhaustive as it doesn't include all unregistered entities, impersonators of genuine firms, fake regulators, or SEC-investigated entities-will likely help avoid some investment scam attempts.