FINRA Investor Alerts

Investor Alert - Well-Traveled Fraud—Advance-Fee Scams Target Non-U.S. Investors Using Fake Regulator Websites and False Broker Identities

investoreducation@finra.org (FINRA Investor Education) — Fri, 23 Mar 2012 14:00:00 EDT

We are issuing this Alert to warn non-U.S. investors that scammers are using fraud—including setting up phony "regulator" websites and fake identities—to separate you from your money.

Investor Alert - "Phishing" and Other Online Identity Theft Scams: Don't Take the Bait

investoreducation@finra.org (FINRA Investor Education) — Wed, 29 Feb 2012 16:10:00 EST

FINRA is updating this Alert to tell you about some of the latest online identify theft scams targeting financial sector customers and to provide tips for spotting and avoiding these scams.

Investor Alert - It Pays to Understand Your Brokerage Account Statements and Trade Confirmations

investoreducation@finra.org (FINRA Investor Education) — Thu, 23 Feb 2012 11:00:00 EST

FINRA is issuing this alert to guide investors through the key elements of their brokerage account statements and trade confirmations and to provide tips that can help avoid problems. Investors should review their statements carefully—and immediately call the firm that issued the statement or confirmation about any transaction or entry they do not understand or did not authorize, and re-confirm any oral communication in writing with the firm.

Investor Alert - Email Hack Attack? Be Sure to Notify Brokerage Firms and Other Financial Institutions

investoreducation@finra.org (FINRA Investor Education) — Thu, 26 Jan 2012 12:25:00 EST

FINRA has received an increasing number of reports involving investor funds being stolen by fraudsters who first gain access to the investor’s email account and then email instructions to the firm to transfer money out of the brokerage account. In addition to issuing a Regulatory Notice to firms, we are issuing this Alert to warn investors about the potential financial consequences of a compromised email account and to provide tips for safeguarding your assets.

Investor Alert - Weathering Tough Economic Times—12 Tips for 2012

investoreducation@finra.org (FINRA Investor Education) — Tue, 20 Dec 2011 11:10:00 EST

Tough economic times have taken a toll on many Americans over the last couple of years. But making sound financial decisions and saving for the future can help you weather financial storms. The start of a new year is a great time to take stock of your finances, so the FINRA Investor Education Foundation has put together these 12 practical tips that can help keep your finances on course in 2012.

Investor Alert - Why Leave Money on the Table—Make the Most of Your Employer's 401(k) Match

investoreducation@finra.org (FINRA Investor Education) — Tue, 18 Oct 2011 11:05:00 EDT

FINRA is issuing this alert to educate investors about the substantial boost to their retirement savings that can come from taking full advantage of an employer's matching contribution. As more and more companies reinstate matches that were cut or eliminated during the economic downturn, workers whose companies offer a match should make the most of it.

Investor Alert - Companies in Bankruptcy Rarely Make Blockbuster Investments

investoreducation@finra.org (FINRA Investor Education) — Mon, 10 Oct 2011 11:05:00 EDT

FINRA cautions investors that bankrupt companies can be targets of online stock tips that can be confusing, inaccurate, misleading and in some cases fraudulent. We are issuing this Alert because we believe that there may be investor confusion in the market regarding the bankruptcy of Blockbuster, Inc., (BLOAQ, BLOBQ) and that some stock promoters may be trying to exploit that confusion.

Investor Alert - Public Non-Traded REITs—Perform a Careful Review Before Investing

investoreducation@finra.org (FINRA Investor Education) — Tue, 4 Oct 2011 11:05:00 EDT

FINRA is issuing this alert to inform investors of the features and risks of publicly registered non-exchange traded REITs. If you are considering a publicly registered non-exchange traded REIT, be prepared to ask questions about the benefits, risks, features and fees.

Investor Alert - "Gold" Stocks—Some Investments Mine Your Pocketbook

investoreducation@finra.org (FINRA Investor Education) — Wed, 24 Aug 2011 10:35:00 EDT

FINRA is issuing this Alert to warn investors about investment scams that promote the latest "hot" gold stock and to provide information on how to invest wisely in gold.

Investor Alert - The Grass Isn’t Always Greener—Chasing Return in a Challenging Investment Environment

investoreducation@finra.org (FINRA Investor Education) — Mon, 25 Jul 2011 10:40:00 EDT

FINRA is issuing this alert because investors may not realize that they could be taking on more risk if they invest in products with higher returns. This alert discusses different ways investors are trying to increase their return—ranging from easily understood investments like high-yield bonds to complex vehicles like structured products and floating-rate loan funds.

Investor Alert - Structured Notes With Principal Protection: Note the Terms of Your Investment

investoreducation@finra.org (FINRA Investor Education) — Thu, 2 Jun 2011 11:35:00 EDT

The retail market for structured notes with principal protection has been growing in recent years. While these products often have reassuring names that include some variant of "principal protection," "capital guarantee," "absolute return," "minimum return" or similar terms, they are not risk-free. FINRA and the SEC's Office of Investor Education and Advocacy are issuing this alert to make investors aware of these risks and to help them better understand how these products work.

Investor Alert - Stock-Based Loan Programs: What Investors Need to Know

investoreducation@finra.org (FINRA Investor Education) — Thu, 26 May 2011 12:05:00 EDT

Investors who need cash—or who want to tap the value of their portfolios without selling their investments—might be tempted to apply for a "stock-based loan," pledging fully paid securities as collateral for the loan. FINRA is issuing this Alert to educate investors about non-recourse stock-based loan programs, including risks and rewards and key questions to ask.

Investor Alert - Investment Scams Follow in the Wake of the Crisis in Japan

investoreducation@finra.org (FINRA Investor Education) — Wed, 4 May 2011 12:55:00 EDT

FINRA is issuing this Alert to warn investors about investment scams that seek to capitalize on the disasters in Japan by linking their products and services to efforts ranging from the detection of gamma rays, to clean-up of nuclear waste and the development of earthquake-resistant structures. To avoid exposing your finances to undue risk, learn how to spot such scams and know where to turn for help.

Investor Alert - "China" Stocks—Look Beyond the Name Before You Invest

investoreducation@finra.org (FINRA Investor Education) — Thu, 14 Apr 2011 12:15:00 EDT

Economic growth in China and strong performances by key indices are fueling the touting of low-priced "China" stocks. But some of the companies being touted all too often have no actual connection to China's stock markets. As with other market sectors, there are legitimate and not-so-legitimate ways to invest in China. We are issuing this Alert to warn investors about scams promoting "hot" China stocks and to provide information on investing wisely in China.

Investor Alert - Take Control of Your Financial Future: Tips to Think About at Tax Time and Beyond

investoreducation@finra.org (FINRA Investor Education) — Mon, 28 Mar 2011 12:05:00 EDT

During tax filing season, many of us spend a great deal of time focusing on our finances—and we are not always happy with what we see. According to the FINRA Investor Education Foundation’s recently released State-by-State Financial Capability Survey, only one in six (16 percent) reported being satisfied with their current financial condition. No matter the season, now is the time to take stock of your finances. Here are some tips you can use.

Investor Alert - Pre-IPO Offerings—These Scammers Are Not Your Friends

investoreducation@finra.org (FINRA Investor Education) — Tue, 15 Mar 2011 11:10:00 EDT

It’s no secret that when a promising company emerges or an industry sector becomes “hot,” investors typically flock to get a piece of the action. But what happens when the company is privately held and investors can’t readily buy shares because the company has not conducted an initial public offering of its stock? FINRA is issuing this alert to warn investors about pre-IPO scams purporting to offer access to shares of Facebook and other popular, well known private companies.

Investor Alert - HYIPs—High Yield Investment Programs Are Hazardous to Your Investment Portfolio

investoreducation@finra.org (FINRA Investor Education) — Thu, 15 Jul 2010 11:05:00 EDT

High-yield investment programs (HYIPs) are unregistered investments created and touted by unlicensed individuals. Typically offered through slick (and sometimes not-so-slick) websites, HYIPs dangle the contradictory promises of safety coupled with high, unsustainable rates of return—20, 30, 100 or more % per day—through vague or murky trading strategies. Virtually every HYIP we have seen bears hallmarks of fraud. We are issuing this alert to warn investors worldwide to stay away from HYIPs.

Investor Alert - Treasury's Guarantee Program for Money Market Mutual Funds: What You Should Know

investoreducation@finra.org (FINRA Investor Education) — Fri, 9 Jul 2010 15:05:00 EDT

Money market mutual funds play an important role in America's financial markets, offering a relatively lower-risk alternative for investors who seek stability and liquidity.

Investor Alert - Oil Spill Stock Scams—Don’t Get Cleaned Out by False Cleanup Claims

investoreducation@finra.org (FINRA Investor Education) — Tue, 22 Jun 2010 11:45:00 EDT

The staff of the Securities and Exchange Commission and FINRA are issuing this alert to warn investors about potential scams that exploit the Gulf oil spill, which began in April 2010 with a blowout at an oil-drilling platform off the coast of Louisiana, and related cleanup efforts. While some of the companies touting their role in the cleanup may be legitimate, others could be bogus operations that are only looking to clean out unsuspecting investors.

Investor Alert - Reverse Convertibles—Complex Investment Vehicles

investoreducation@finra.org (FINRA Investor Education) — Tue, 16 Feb 2010 00:00:00 EST

Reverse convertibles are debt obligations of the issuer that are tied to the performance of an unrelated security or basket of securities. Although often described as debt instruments, they are far more complex than a traditional bond and involve elements of options trading. FINRA is issuing this alert to inform investors of the features and risks of reverse convertibles.