The SEC has issued an investor alert warning people about fraudulent solicitations that purport to be affiliated with or sponsored by the Securities and Exchange Commission.
The SEC does not endorse investment offers, assist in the purchase or sale of securities, or participate in money transfers. SEC staff will not, for example, contact individuals by telephone or e-mail for purposes of:
- seeking assistance with a fund transfer
- forwarding investment offers to them
- advising individuals that they own certain securities
- telling investors that they are eligible to receive disbursements from an investor claims fund or class action settlement; or
- offering grants or other financial assistance (especially for an upfront fee).
If you receive a telephone call or e-mail from someone claiming to be from the SEC (or other government agency), always verify the person’s identity. Use the SEC’s personnel locator, (202) 551-6000, to verify whether the caller is an SEC staff member and to speak with him or her directly. In addition, you can call the SEC at (800) SEC-0330 for general information, including information about SEC enforcement actions and any investor claims funds.
For more information, click here.
Teaching Suggestions
- Ask students to visit other websites, such as, consumer.gov and investor.gov for additional tips on investing wisely and avoiding fraud.
- Ask students to 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).
Discussion Questions
- What actions can you take to protect yourself from government imposters?
- What are the tell-tale signs that an impersonator is contacting you to steal your financial information?
Melissa Hart
Focus on Personal Finance, 7e 