FINRA Warns of Facebook Pre-IPO Scams

facebook 150x150 FINRA Warns of Facebook Pre IPO Scams  

The Financial Industry Regulatory Authority (FINRA) is alerting consumers to watch out for scams purporting to offer investors access to pre-IPO shares of well-known social media companies such as Facebook. They have a detailed investor alert called Pre-IPO Offerings – These Scammers Are Not Your Friends.


Tips from FINRA include:

· avoiding any unsolicited pre-IPO offer – investors should ask themselves, “Why would a total stranger tell me about a really great investment opportunity?”;

· being alert to persuasion tactics – virtually all pre-IPO scams rely on the same recipe for a con: dangling the prospect of exclusive access to eye-popping returns at a discount if you act quickly;

· verifying whether the person touting the stock or investment is licensed;

· determining if you’re being conned by a convicted criminal by using the Federal Bureau of Prisons Inmate Locator;

· using search engines to learn as much as you can about a solicitation and those behind it; and

· getting an unbiased second opinion from a licensed investment professional or an attorney.

If you’ve been the victim of an investment related scam, you can file a complaint with FINRA and your BBB.

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About Trisha Sefakis

I started at BBB|Cincinnati in 2004 as the Database Coordinator, I am now the Manager of Digital Media.