Feeds

Crooks lured investors with fake watchdog site

Bogus promises to extract cash from bankrupt biz

The essential guide to IT transformation

The North American Securities Administrators Association (NASAA) has closed down a website that was using its content to dupe investors.

The association, which is an international group that aims to protect investors, issued a cease-and-desist letter to the State Securities Commission website, which seemed to be posing as a national regulator to trick people.

“Several fake regulator websites have been brought to the attention of state and federal securities regulators in recent years,” Jack Herstein, president of the NASAA, said in a canned statement. “Many of these sites purport of offer relief to investors. In reality, they are fronts for con artists posing as regulators.”

“We are concerned that con artists are attempting to cash in on our reputation for effective investor protection to lure others into an illicit scheme,” he added.

The website, statesec.org, now appears to be shutdown, but you can still see a cached version here, which said:

The State Securities Commission either acts as trustee or works with an independent court-appointed trustee in a missing asset case to recover funds. The statute that created SSC provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered.

The site also has a news section and investor alerts, which Herstein said were slightly modified versions of recent NASAA news releases and alerts. It adopted information from other securities sites such as the Securities Investor Protection Corporation (SIPC) as well.

The commission also claims to consist of "the securities administrators in the 50 states, the District of Columbia, Puerto Rico, the US Virgin Islands, Canada and Mexico", NASAA said, and that it "was chartered by Congress to combat fraud".

“This information is patently false,” Herstein said. “Cons will go to great lengths to make themselves appear legitimate.”

Any investors who want to make a claim through the commission are asked to include a copy of their most recent brokerage account statement, along with copies of confirmation slips for securities transactions, correspondence and other documentation. Some investors also are asked to include a check with their completed forms.

“Requests to submit personal account information and money to a ‘regulator’ are red flags of investment fraud,” Herstein said. ®

Boost IT visibility and business value

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.