SEC Investor Alert: Beware of False or Exaggerated Credentials

In order to attract unsuspecting investors and gain their trust, fraudsters may boast about credentials they do not have. They may fabricate, exaggerate, or hide facts about their backgrounds to portray themselves as successful professionals and to make you believe that the investments they offer are legitimate. Others may repeat these misrepresentations and contribute – perhaps unintentionally – to a fraudster’s false reputation of success and professional accomplishment.  Fraudsters may:

• misrepresent their education
• lie about having been awarded honors that they have not received or that do not even exist. 
• pretend to hold certain professional titles to suggest that they have certain expertise or qualifications or to have a certain position or title at a company
• appear as a guest commentator on financial television shows 
• use traditional media sources, the Internet, or social media to develop a public profile that gives them a false air of legitimacy
• inflate their professional experience 

Do not trust someone with your investment money just because he or she claims to have impressive credentials or experience, or manages to create a “buzz of success” around himself or herself. 

Ask for details and be particularly skeptical if you do not receive direct and specific answers to your questions. Be cautious if you encounter discrepancies regarding someone’s background such as conflicting information or dates that do not add up. 

The SEC's Office of Investor Education and Advocacy (OIEA) issued this Investor Alert to warn investors that fraudsters may misrepresent their backgrounds and experience to lure investors into investment schemes. Learn more at Investor.gov.