In a Search for Safety, Be Alert for Imposters
When markets drop sharply or show signs of turbulence, investors often shift their assets to what they perceive to be safer investments. But fraudsters know this—and they can quickly change their pitches to match what investors seek.
In some instances, fraudsters misuse the name of a real registered investment professional or firm to give their schemes the appearance of legitimacy. FINRA previously issued an investor alert on this topic, describing how imposter schemes rely on a tactic known as source credibility—building credibility by claiming to be properly registered and employed by a reputable firm. FINRA has also seen instances where fraudsters not only impersonate a registered investment professional, but also offer fictitious securities investments or banking products.
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Source Fool.com
