The Texas State Securities Board is warning investors about an online investment scheme in which bad actors are impersonating the Texas Stock Exchange and use a similarly named website to defraud investors. Similar schemes are targeting interested investors through WhatsApp, Telegram, or other social media platform groups with investment opportunities.

“These imposters threaten our Texas investors but also create reputational harm for our registered community,” said Director of Enforcement Jeramy Heintz. “Investors need to be vigilant and wary of investment opportunities that originate from WhatsApp or Telegram investment groups.”

The imposters introduce themselves claiming to be names of leaders from the legitimate Texas Stock Exchange website, https://www.txse.com, and then the imposters invite the investors to a different website to sign up and begin trading. The phony website appears legitimate and even uses the same logo as the real website.

The Texas State Securities Board is recommending investors consider the following information when dealing with purportedly registered parties through online platforms that the investor did not seek out:

• Anyone can be anyone on the internet, and investors should remember scammers are using fake social media accounts to obscure their identities. Texans should take steps to identify phony accounts by looking closely at content, analyzing dates of inception and considering where they encountered the account. Stock exchanges and legitimate financial advisors do not solicit new investors through social media group chats. The Better Business Bureau has released additional tips for spotting these fake accounts.

• Scammers are attempting to trick investors by registering domain names for fraudulent websites that are very similar to domain names for real websites. Investors should always pay careful attention to domain names for internet websites and be wary of links sent to them on social media. If you are suspicious of a link that is sent to you do not click on the link, instead try to navigate to the actual website through searching for the company on a search engine you trust. Alternatively, you can directly contact the Texas State Securities Board to confirm the status of the website, stock exchange, or investment adviser.

• Registered parties are required to truthfully disclose all material facts, and they must disclose the risks associated with each product. On the other hand, bad actors will often minimize or conceal risks and instead promise large payouts or multiplying your initial investment quickly. Investors should pay attention to these details, as they can tip an investor off to the possibility of a scam.

• Bad actors may be impersonating stock exchanges or financial advisors by using phony websites that place viruses or malicious software on victim’s computers. Investors should continue to embrace cybersecurity.

Please contact the Enforcement Division if you believe you have been the victim of an impersonation scheme or any other fraudulent securities scheme. We are available by telephone at 512-305-8392 or email at [email protected].