The SEC Says Fake Investment Firms Used Government Filings to Look Legitimate—Here’s the Trick Investors Need to Know

An SEC filing can look impressively official without proving that an investment firm has SEC registration, licensing, or government approval. Investors should independently verify the firm and financial professional before sending money – Shutterstock

A government website can make almost anything look more official than it really is, and scammers have figured that out. The Securities and Exchange Commission recently warned that dozens of entities used SEC filings to create the appearance of legitimate investment firms, giving potential victims something that looked reassuringly official to click, search, and believe.

Many people understandably assume that anything appearing in an SEC database has received the government’s stamp of approval. It hasn’t. A filing can show that someone submitted paperwork to the SEC without proving that the person or firm actually holds the registration, license, approval, or credibility that the sales pitch claims.