Capital Markets Advisory Scam - How to Protect Yourself

Common Tactics Used by Scammers

• Cold Outreaching: Scammers pose as senior vice presidents of growth capital or investment banking, emailing small business owners with flattering, generic acquisition offers.

• Imposter Profiles: Fraudsters use real names, stolen credentials, or deepfakes to mimic legitimate financial firms and registered brokers on social media and messaging apps.

• Ramp-and-Dump Schemes: Victims are lured into WhatsApp or Telegram groups with false stock recommendations, driving up thinly traded stock prices before scammers sell off their shares and crash the market.

• Malware and Phishing: Initial contact is often designed to make you open documents containing malware or hand over sensitive financial information.

Warning Signs to Watch For

• Unsolicited Contact: A major advisory firm reaching out "cold" out of nowhere with no specific knowledge of your company.

• Vague Details: Emails lack official corporate domains, specific company names, or verifiable physical addresses.

• Off-Platform Communication: Legitimate professionals rarely conduct formal business exclusively through encrypted apps, personal email, or text messages without official institutional channels.

• Pressure for Fees or Data: Requests for upfront fees, taxes, commissions, or immediate personal identification documents (like driver's licenses).

How to Protect Yourself

• Verify Independently: Look up the firm or advisor directly using official phone numbers or regulatory lookup tools (such as FINRA BrokerCheck) rather than links provided in messages.

• Ignore Cold Pitches: Delete and block unsolicited messages or acquisition offers from individuals with vague credentials.

• Never Transfer Funds: Do not send money, crypto, or banking details to anyone you met online or through a messaging group chat.