On June 24th, the SEC announced that it has revised its list of unregistered entities that use inaccurate data to solicit mainly non-US investors. This list is known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list. The update adds 24 soliciting entities, six impersonators of real firms, and four bogus regulators. Revising the list of soliciting entities that have been the subject of investor complaints allows the SEC to provide information learned through reviewing tips, referrals, complaints, and other sources, helping retail investors avoid potential fraud before they invest.
The PAUSE list also identifies bogus regulators who falsely claim to be government agencies or affiliates and those impersonating registered securities firms. They may impersonate government sources, including the SEC, or other legitimate investment professionals, such as brokers and investment advisers. Impersonators may be part of an advance fee scam or may use personal data they obtain to steal someone’s identity or misuse their financial assets. The SEC reminds investors that false communications could include phone calls, voicemails, text messages, messages via social media, emails, letters, and certificates. Those who receive a communication that appears to be from the SEC are encouraged to refrain from providing any personal information until it can be confirmed that they actually are dealing with someone from the SEC.
Finally, the SEC shared that AI technology has made it even easier for bad actors to impersonate government agencies, organizations, and individuals in order to deceive investors.
The SEC’s Office of Market Intelligence, in conjunction with the Office of Investor Education and Advocacy and the Office of International Affairs, periodically revises the PAUSE list. The SEC encourages investors to remain apprised of these impersonation schemes by visiting investor.gov for helpful articles with tips on investing wisely and avoiding all types of fraud.
An entity’s placement on the PAUSE list does not mean the SEC has made decisions about the merits of any securities being offered or that it has found violations of US federal securities laws.
Source:
SEC Updates List of Firms Using Inaccurate Information to Solicit Investors (sec.gov)
Public Alert: Unregistered Soliciting Entities (PAUSE) list
