SEC urges investors to beware of frauds perpetrated by impersonators
The Securities and Exchange Commission (SEC) has warned people to beware of fraudsters who impersonate the SEC in order to persuade people to make investments and subsequently hand over their money.
The SEC said some scammers are now posing as licensed business operators in the capital market or utilising the names, photos, or logos of the SEC or even other regulatory authorities to deceive people into giving them money.
The fraudsters use many methods, including phones, online applications, and social networks, to convince their victims to make investments with them, it said.
To combat the increasing cases of frauds, the SEC has put together a list of fraudulent businesses in the "investor alert" section on its website based on the evidence it has found and complaints it has received.
It promised to update the list regularly.
The SEC reported that 86 fraudsters had been listed in the investor alert from January to June this year.
It said that during the same period it had taken legal action in 11 cases of fraud in which the SEC logo was used illegally to deceive people.
The SEC said that it had provided information like articles, infographics, and videos regarding ways to deal with fraud.
The “SEC Check First” application makes it easier for anyone to check out the listings of businesses certified by the SEC.
Anyone can use the SEC Live Chat feature on the SEC website and the 1207 number to report fraud, the agency said.
