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SIPC Issues Phishing Warning to Investors

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The Securities Investor Protection Corp. on Wednesday issued a warning about recent phishing scams targeted at brokerage clients.

The SIPC, which is responsible for protecting investors from insolvent brokerages, said in a press release that phony organizations have begun posing online as consumer protection groups.

The groups have targeted investors, asking them to provide account information in exchange for restoring lost funds. The groups have asked investors to pay up-front fees.

"Brokerage firm liquidations handled through SIPC do not require investors to pay a fee to recover assets," SIPC President Stephen Harbeck said in the release. "If any other supposed representative or website requests an upfront fee to recover assets or requests personal information, investors should be extremely wary."

SIPC pointed to IAC International and Alliant Trust Systems as examples of phony consumer protection groups.

Additionally, the agency said that many of the groups are based...(continued)

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