Security News > 2022 > January > Broker-dealers impersonators stole $50 million using spoofed sites
56-year-old Allen Giltman and his co-conspirators created fraudulent sites advertising various investment opportunities to solicit money from investors via the internet.
In conversations with victims who reached out for investment opportunities, the fraudsters impersonated FINRA broker-dealers claiming to be employed by the financial institutions they spoofed on the scam sites.
"At least 70 victims of the fraud scheme nationwide, including in New Jersey, collectively transmitted approximately $50 million that they believed to be investments."
In July 2021, the FBI's Criminal Investigative Division and the Securities and Exchange Commission warned investors of fraudsters impersonating registered investment professionals such as brokers and investment advisers.
The July alert followed a similar fraud alert issued by FINRA the same week about broker imposter scams using phishing sites impersonating brokers and doctored SEC or FINRA registration documents.
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.