Investor Alerts

Boiler room-style calls are characterized by high pressure sales pitches from people who call you out of the blue, working from a list or simply dialing from a phone book. FINRA is issuing this alert because we have seen an increase in aggressive calls touting the next hot stock. Callers tend to target seniors, and have been all-too successful in conning people of all ages into buying penny stocks and other speculative investments.

The vote by Britain to leave the European Union was quickly felt the world over, creating market uncertainty and spiking volatility. We are re-issuing this Investor Alert to outline the different types of market risks your investments may be exposed to and to describe steps you can take to minimize or manage those risks.

Investors who need cash—or who want to tap the value of their portfolios without selling their investments—might be tempted to apply for a "stock-based loan," pledging fully paid securities as collateral for the loan. FINRA is issuing this Alert to educate investors about non-recourse stock-based loan programs, including risks and rewards and key questions to ask.

It's never too early to consider how you want your financial affairs to be managed if something happens to you. One solution is to grant a power of attorney (POA) for your investment account assets to your spouse, sibling, adult child or close friend—someone you trust to act wisely and in your best interest.

Your brokerage firm has an obligation to safeguard your personal financial information. And every investor should take time to understand their firm’s cybersecurity procedures. But even the best procedures cannot prevent all instances of identity theft—especially if the vulnerability lies with you, the customer. Here are critical steps you can take to safeguard your financial accounts and help prevent identity theft.

An increasing number of securities firms are marketing and offering securities-backed lines of credit, or SBLOCs, to investors. SBLOCs can be a key revenue source for securities firms, especially in times of solid market returns and growing investment portfolios, when investors may feel more comfortable leveraging their assets. Firms market SBLOCs as a type of financing and liquidity strategy that can unlock the value of your investment portfolio.

FINRA is publishing this Alert to warn investors not to send money or provide personal information associated with a widespread IRS impersonation scam timed to coincide with the October 15 deadline for anyone who filed a federal tax extension last April.

FINRA is issuing this alert to warn investors about scammers who contact investors with promises of significant cash, prizes and lottery winnings. With fraudulent schemes, there is always a catch: You have to agree to send money upfront to secure your new riches. Our advice: don’t do it.

FINRA is issuing this investor alert to help investors better understand smart beta products.

FINRA is issuing this Alert to warn investors to be wary of stock promotions sent through popular messaging apps such as WhatsApp that allow users to almost instantly exchange messages.

If you're like many investors, your portfolio contains bonds. When you purchased those investments, you may not have given much thought to whether you'd be able to sell them when you want to. FINRA is issuing this alert to educate investors about bond liquidity, and the potential for decreased liquidity and investment losses for those who sell their bonds before maturity at a time of market stress.

FINRA is issuing this alert to inform brokerage account holders, family members and other beneficiaries about the value of preparing for the inevitable, and the general process firms follow when an account holder passes away. We also provide tips for making the transfer process as efficient and trouble-free as possible for account holders and also for heirs and beneficiaries.

We are issuing this Alert to warn non-U.S. investors that scammers are using fraud—including setting up phony "regulator" websites and fake identities—to separate you from your money.

Automated investment tools may offer clear benefits—including low cost, ease of use, and broad access. But it is important to understand their risks and limitations before using them.

A range of programs and lawsuit settlements have resulted in new money coming into Indian Country. If you are a recipient or potential recipient of this new money, you may have questions about how to manage and invest the assets, and how to select and work with an investment professional. The Financial Industry Regulatory Authority (FINRA), the FINRA Investor Education Foundation and First Nations Development Institute teamed up to develop the following tips to help you confidently manage this new money, as well as avoid financial fraud.

Information technology (IT) plays a critical role in the securities industry. Unfortunately, cyber threats to the information and computer systems of brokerage firms are increasing, and with these threats comes the risk of potential harm to investors.

New technology such as electronic cigarettes, often called e-cigarettes, can give rise to legitimate investment opportunities. But sometimes it opens the door to fraud. FINRA is issuing this Alert to warn investors to be wary of aggressive promotions touting stocks that claim to capitalize on various aspects of the e-cigarette and vaporizer, or "vape," market.

Precious metals are notorious for price movements that can pique investor interest during upswings and downswings alike. If you are thinking that now is the time to invest in physical precious metals such as silver, gold or maybe palladium or platinum, be aware of the risks involved. They include the potential for high-pressure sales tactics and even fraud.

FINRA is reissuing this alert on the heels of its disciplinary action related to the fraudulent sale of promissory notes to NFL and NBA players. The alert details the risks associated with promissory notes and the continued threat of promissory note schemes whose sole objective is to defraud investors.

We are reissuing this alert to warn investors not only about the potential for fraud in this arena, but also to reiterate the risks of investing in thinly traded companies about which little is known.

FINRA is issuing this alert to caution investors that buying and using digital currency such as Bitcoin carry risks. Speculative trading in bitcoins carries significant risk. There is also the risk of fraud related to companies claiming to offer Bitcoin payment platforms and other Bitcoin-related products and services.

If you are in your sixties, and own your home, chances are you have heard about reverse mortgages - or will soon.

Whether you work with a broker or adviser or you trade on your own, you should always monitor your investments. By keeping an eye on your investments, you can prevent minor mistakes from turning into big problems.

Where there is uncertainty, there are always bets-the question is who wins. From horse racing to the price of gold, people have always speculated on uncertainty. FINRA is issuing this alert to inform investors about event-linked securities-financial instruments that allow investors to speculate on a variety of events, including catastrophes such as hurricanes, earthquakes, and pandemics.

Closed-end funds have become popular products because some offer high distribution rates—as high as 6 percent or more. But be aware that a fund’s distribution rate is not the same thing as its return—even if the numbers might look similar. And before you invest, be sure you understand where the closed-end fund is getting the money to pay distributions. In some cases, part of the distribution comes from the return of principal.