Login | September 18, 2024
Beware of scammers impersonating support centers
JULIE JASON
The Discerning Investor
Published: September 12, 2024
If you find you need to contact your brokerage firm's customer support department, but you can't remember the phone number, you might go online to a search engine to find the contact information -- and you might get caught up in a scam as a result.
The Financial Industry Regulatory Authority, which oversees the U.S. broker-dealer industry, has found that scammers are impersonating some FINRA member firms' support centers by using "sponsored search result ads" (tinyurl.com/mwmexxfu). You may recognize these ads: They frequently appear as the first search results when using a web browser or search engine.
When someone clicks on the scam ad, "instead of being directed to the firm's page, they're taken to a fraudulent website controlled by bad actors," FINRA reported, adding that scammers "then attempt to steal funds or personal information from their targets."
How does the ad scam work?
Sponsored ads are created that mimic a firm's legitimate information, FINRA said. The ads often use a firm's logo -- or an image that is extremely similar to the logo. The ad might have the firm's URL or web address -- but clicking on the link will actually lead you to a different destination.
Because the fake ad might appear to be a natural result of a legitimate search (since sponsored ads often appear near regular search results), it can be difficult to spot.
If you end up at the fraudulent website, the scammers "might attempt to gain access to your computer by prompting you to download remote login software or malware," according to the Investor Insight.
If they are successful, the scammers "can retrieve personal information and login credentials, transfer funds and install malware for future attacks -- potentially all without you realizing what has occurred."
As FINRA points out, the ad can include a fraudulent phone number, and if you call that number, you can still become a victim of fraud even if you never visit the fake website.
FINRA notes that this scam is closely related to tech support scams, a particular plague for those over the age of 60. The FBI's 2023 Internet Crime Report indicated that tech and customer support fraud, along with government impersonation, involved losses totaling more than $1.3 billion, with more than $770 million of that total related to those over age 60 (tinyurl.com/45k9v597).
FINRA offers a number of suggestions to avoid such a scam, including:
-- Contact the firm's support center directly from the firm's website or mobile application, rather than using a search engine. If you need to call the firm, use the number on your account statement.
-- If you should use a search engine, make sure you "differentiate between ads and legitimate search results." Ads often appear with the word "sponsored" or "ad" in the copy above them, or they might have background shading or appear in a box.
-- Check for typos or incorrect characters in headlines or URLs. If you click on a URL, make sure it matches the website address that is displayed.
-- If at any time during a support session you feel uncomfortable or suspect a scam, "end the session immediately by closing your browser and related programs, disconnecting your internet, or hanging up the call."
What should you do if you are drawn into a support center scam?
Act right away. Change your passwords immediately and report the incident to your brokerage firm. Some firms will recommend that your accounts be closed and new accounts opened in their place. Be sure to carefully review your accounts for unauthorized transfers, withdrawals, charges or unauthorized activity.
Run an antivirus scan on your computer. If the scam involves a fraudulent ad, report it to the relevant search engine company.
Report the scam to FINRA (tinyurl.com/33u3am95), the SEC (tinyurl.com/mxzt4mvw) and the FBI (tinyurl.com/3ta7mseb).
Regular readers know that I'm a fan of FINRA as a solid, unbiased resource of investor education. Take a little time to look at FINRA's other resources, such as how to identify imposter investment scams (tinyurl.com/2vubj8jz) and how to protect your money (tinyurl.com/bdf9jd3t).
And, as always, let me know what's on your mind (readers@juliejason.com). What questions do you have that we can address together in this column?
Seasoned investment counsel (tinyurl.com/52nus8hz) and award-winning columnist and author, Julie Jason, JD, LLM, promotes financial literacy and investor protection. Read her latest book, "The Discerning Investor: Personal Portfolio Management in Retirement for Lawyers (and Their Clients)" (tinyurl.com/4u7h9pjs), published by the American Bar Association. Write to Julie at readers@juliejason.com. While all questions cannot be answered, each email is read and reviewed and can lead to discussion in a future column.
COPYRIGHT 2024 Julie Jason, DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION, 1130 Walnut St., Kansas City, MO 64106; 816-581-7500.