"Auction' e-mails don't rate with Finra

The Financial Industry Regulatory Authority Inc. is warning investors to be on the lookout for scam e-mails that promise refunds of $1.5 million to auction rate security investors.

OCT 18, 2009

By Bloomberg

The Financial Industry Regulatory Authority Inc. is warning investors to be on the lookout for scam e-mails that promise refunds of $1.5 million to auction rate security investors. In an alert issued this month, Finra said that the e-mails appear to be coming from the regulator itself. “The e-mail requests personal information from investors, and could be used for identity theft or another scam,” said Gerri Walsh, vice president of investor education. The message appears somewhat legitimate because it doesn't ask for account data or Social Security numbers, she said. Scams often engage investors first and then set them up for a fraud by obtaining more information or soliciting money, Ms. Walsh said. Investors and advisers who see a phony e-mail should forward it to Finra's whistleblower office at [email protected].

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