Relax. The SEC's Office of the Whistleblower isn't after you after all.
Concerned executives, advisers, investors and other individuals have been flooding the Securities and Exchange Commission with calls, seeking information after receiving e-mails supposedly sent by the SEC's whistle-blower office. The e-mail warned recipients that the office “received an anonymous tip on alleged misconduct at your company, including material misstatement or omission in a company's public filings or a failure to file municipal securities transactions or public pension plans, involving such financial products as
private equity funds.”
The e-mail also warned that if recipients failed to respond via hyperlink to the complaint within a 14-day period, their company would be investigated by the SEC. In reality, the hyperlink actually linked recipients to some malicious software.
SEC spokeswoman Florence Harmon had no additional comment on the e-mail, but the agency this week released an updated Investor Alert to warn the public about con artists impersonating government officials in an attempt to phish unsuspecting investors.
In addition, complaints have surged of late about fraudsters' pretending to be SEC staffers. The scammers call up victims to offer them cash in exchange for a small payment.
“The SEC does not endorse investment offers, assist in the purchase or sale of securities, or participate in money transfers,” the agency warned in its Investor Alert. “Nor is the SEC affiliated with any sweepstakes, drawings, lotteries or other types of events that feature prizes or winnings or cash windfalls.”
Indeed, fake e-mails purportedly from government agencies can have very real consequences.
Last summer, a phony press release that claimed to be from the SEC accused equity research firm Muddy Waters LLC of participating in an alleged stock manipulation ring. The release was declared a hoax after the SEC had said it didn't issue such an announcement and Muddy Waters confirmed the release was a fake. However, the phony announcement did get picked up by some media outlets.
