FINRA Alerts Investors to Cold Calls From Brokerage Firm Impostors

Securities Lawyer 101 Blog

FINRA’s Warning

On August 6, 2013, the Financial Industry Regulatory Authority (“FINRA”) issued an alert warning investors that fraudsters pretending to work for at least one well-known brokerage were making cold calls in which they told potential victims they had important information about certificates of deposit (“CDs”) with yields considerably higher than the best rates in the market.

The callers say their supervisor will follow up with more details, and, if they succeed in getting an address, send the victim applications and forms for transferring funds, in order to collect additional information.  If successful in obtaining that information, they may try to steal money from an account, or the person’s identity.

Some of the people contacted are customers of the brokerage firm in question, and so less inclined to be skeptical than if called by a broker with whom they have no association.  FINRA did not identify the firm.

What You Should Do

FINRA warns that anyone who receives an unsolicited call of this, or any other, kind from a supposed financial services representative should never provide personal information or authorize any transfer of funds.  Instead, he or she should call the customer service center or compliance office of the firm the caller claims to work for, using the number provided on the firm’s website or in a telephone directory, and attempt to verify the offer being promoted.

Potential victims should also be aware that fraudsters can easily “spoof” telephone numbers.  What appears on their caller ID may appear to be the number of their own brokerage firm, thanks to this technique.  Trusting that the call is legitimate based on caller ID would be foolhardy.  It’s best to make a separate call to confirm the legitimacy of the offer.

Anyone who gives information to a cold caller and later suspects he may have been scammed should contact his broker immediately to report a loss or theft of funds through an electronic funds transfer.  FINRA also recommends that a complaint be filed with its online Complaint Center.

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton Florida, (561) 416-8956, by email at info@securitieslawyer101.com or visit www.securitieslawyer101.com.   This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490Rule 506 private placement offerings and memorandums, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration statements on Form S-1 IPO’s, OTC Pink Sheet listings, Form 10 OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, direct public offerings and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or info@securitieslawyer101.com. Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
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www.SecuritiesLawyer101.com

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