SEC Issues Investor Alert Regarding False and Exaggerated Credentials of Potential Investment Schemes
The SEC Office of Investor Education and Advocacy issued an investor alert to warn investors about fraudsters who may misrepresent their backgrounds and experience to lure investors into investment schemes.
The SEC explained that in order to attract investors and gain trust, fraudsters may boast and exaggerate about credentials they do not have. Specifically, the SEC noted that they might fabricate, exaggerate, or hide facts about their backgrounds to portray themselves as successful professionals and make investors believe that their offers are legitimate.
The SEC recommended investors verify that any person who tries to sell them an investment product or service is properly licensed or registered. Furthermore, the SEC cautioned against making investment decisions based solely on assertions regarding the person's credentials or professional experience, including claims found on the Internet or in traditional media sources.
The SEC highlighted resources that an investor should check before making an investment decision, including IAPD, BrokerCheck, and state securities regulators, and its "Top Tips for Selecting a Financial Professional."