FINRA outlined various steps broker-dealers may take to monitor and respond to the increasing frequency of imposter websites created to defraud clients.
According to an Information Notice, imposter websites are designed to obtain clients' personally identifiable information or login credentials. The Information Notice states that firms may take "proactive steps" to monitor for imposter websites by:
- registering additional domain variations that include common misspellings or character substitutions; and
- using social media or monitoring services to catch any potential imposter sites.
According to the Notice, if a firm identifies an imposter website, it may take various responses to address the issue and deactivate the website, including:
- reporting the website to local law enforcement, the FBI or the FINRA Internet Crime Complaint Center;
- generating a "WHOis" search to find the contact information of the imposter;
- contacting the hosting provider or domain registrar to remove the imposter;
- consulting a cybersecurity specialist attorney or similar consultant;
- notifying the SEC, FINRA or other regulators; or
- warning clients of the imposter threat.
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