How the scam works:
With the promise of making money quick and legal, people get lured into all kinds of investments and Ponzi schemes. Most of these kinds of schemes fail, making for thousands of victims all over the world.
This scam occurs a while after the victims are acknowledging their initial investment's loss. They get approached by a fake SIPC (Securities Investor Protection Corp.) representative, who informs them that the funds are in the process of being recovered. SIPC is a US federally mandated corporation that backs investments by ensuring that the victims receive the money and securities held by failed brokerage firms.
Scammers claim to be SIPC officials when they get their hands, one way or another, on a list with investment victims. This way, they’ll get the victims to pay an up-front “processing” fee, along with sending a filled-out form with all the personal information!
How to avoid:
SIPC never requires an up-front fee. Also, they have all your information available from the failed brokerage firm’s files. If in doubt, contact SIPC directly.
Make your friends and family aware of this scam by sharing it, using the buttons provided.
Verify a website below
Are you just about to make a purchase online? See if the website is legit with our validator:
vldtr®
TOP 3 MUST-WATCH FRAUD PREVENTION VIDEOS
1. Top 5 Amazon Scams in 2023 2. Top 5 PayPal Scams in 2023 3. How To Spot a Scam Email in 2023
