The Tennessee Department of Commerce & Insurance’s (TDCI) Division of Securities is alerting consumers about the rising threat of spoofing and phishing scams targeting unsuspecting investors in Tennessee. These scams are used by cybercriminals to gain a person’s trust and manipulate them into divulging personal or sensitive information, which can then be fraudulently used.
“Fraudsters and scam artists are finding increasingly insidious ways to use technology to harm innocent consumers and investors while hiding their true identities,” said TDCI Commissioner Carter Lawrence. “Tennessee investors should remember to always ask questions and stay on alert whenever they are contacted online or by email by individuals whom they do not know.”
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**Understanding Spoofing and Phishing**
Though often used together, spoofing and phishing are distinct methods of deception. Spoofing involves cybercriminals duplicating and altering real phone numbers, email addresses, screen names, or websites to appear as trusted sources. Even minor alterations, like adding or deleting a character, can transform a legitimate website into a fake one, facilitating phishing efforts.
A recent local spoofing scam involved individuals impersonating the Rutherford County Sheriff’s Office. These scammers made threatening calls posing as sheriff’s deputies, claiming individuals missed jury duty or had an outstanding warrant. They used real deputies’ names, provided a fake phone number, and requested money to resolve the issue.
Phishing, on the other hand, involves cybercriminals sending fraudulent emails, text messages, or making phone calls to impersonate legitimate people or entities, tricking consumers into divulging personal information. This information can then be used fraudulently or sold on the black market. A related scam, Smishing, targets individuals through SMS or text messages.
More information about these scams can be found in TDCI’s newest blog post.
“As part of our mission to protect Tennessee investors, our team investigates every complaint we receive related to securities scams,” said TDCI Assistant Commissioner Elizabeth Bowling. “Often, spoofing and phishing techniques are used in securities-related scams. By educating themselves and learning the red flags of a scam, Tennessee investors can avoid compromising their finances or personal identity. Investors should contact our team if they have questions about an investment or suspect they have been the victim of a securities scam.”
**Red Flags of Spoofing and Phishing**
– Firms asking for personal or financial information over the phone. Legitimate financial professionals or firms will not request private information via email, text, or online chat out of the blue.
– Spelling or grammatical errors, or unfamiliar language in digital communications. Communications from established entities will rarely contain these types of flaws.
– Inconsistencies in links, addresses, and domains. Hover over suspicious links before clicking on them and closely review the spelling of domain names and email addresses.
– Reloading scams. These scams target investors who previously lost money to a scam or business failure that resulted in bankruptcy. Investors should not have to pay money to get their share from a bankruptcy estate.
For more information or if you suspect securities fraud has occurred, contact the Securities Division at tn.gov/commerce/securities or 800-863-9117.
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