Social Media and Investing – Understanding Your Accounts
summary
The SEC’s Office of Investor Education and Advocacy issued a 2012 bulletin warning investors not to share financial information on social media, use weak passwords, or accept friend requests from unverified financial professionals, emphasizing preventive measures to avoid fraud without alleging specific misconduct.
paragraph
The SEC’s Office of Investor Education and Advocacy published a January 2012 Investor Bulletin to educate investors on avoiding social media-related fraud, advising against sharing sensitive data like Social Security numbers, bank details, or account information online. It recommends customizing privacy settings, using strong unique passwords changed every six months, avoiding public Wi-Fi, and verifying financial professionals through official firm channels rather than personal social media accounts. No individuals or entities were accused of fraud, no monetary losses were cited, and no enforcement actions were taken—this was purely an informational advisory to promote investor vigilance.
narrative
The SEC’s Office of Investor Education and Advocacy released a January 2012 Investor Bulletin to help investors navigate the growing use of social media platforms like Facebook and Twitter for investment-related purposes. It warned users not to disclose sensitive financial information—such as Social Security numbers, bank account details, or login credentials—on social media, stressing that even seemingly legitimate financial professionals may use personal accounts that are not firm-sponsored. The bulletin advised adjusting default privacy settings to limit biographical data exposure, using strong passwords with letters, numbers, and symbols, and never reusing passwords across accounts. Investors were cautioned against accepting friend or connection requests from unknown financial service providers and urged to verify communications through official channels like phone, mail, or secure firm websites. The guidance also emphasized avoiding public Wi-Fi networks for account access, logging out completely after sessions, clearing browser history, and ensuring websites use HTTPS encryption. No specific fraud cases, perpetrators, or financial losses were identified; the bulletin served solely as preventive education, not enforcement or policy. It concluded by reminding users that social media platforms are not secure channels for financial discussions and that vigilance is essential to avoid identity theft and scams.
Classified non-corporate(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Parties
the sec’s office of investor education and advocacythis investor bulletin
Keywords
social mediasocialmediainvestorsinformationmedia accountsaccountswebsitemedia websiteaccountinvestormedia websitespublic wirelesspasswordsprivacy
Extracted insights
Entities 2
- agency the sec’s office of investor education and advocacy
- person this investor bulletin
Triples 10
- The SEC’s Office of Investor Education and Advocacy is issuing this Investor Bulletin
- Investors should consider tips when establishing an account on a social media website
- Investors should be mindful of the various features on these websites to protect their privacy and help avoid fraud
- Investors should check default settings and modify them, if appropriate, before posting any information on a social media website
- Investors should consider customizing their privacy settings to minimize the amount of biographical information that they allow others to view on the website
- Investors should never communicate account information, Social Security numbers, bank information or other sensitive financial information on a social media website
- Investors should consider whether it is appropriate to accept a “friend” or other membership request from a financial service provider
- Investors should familiarize themselves with the functionality of the social media website before broadcasting messages on the site
- Investors should take precautions to ensure that information contained in their social media accounts remains secure
- Investors should select “strong” passwords for their social media accounts
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Extracted body text (9,329c)
Investor Bulletin:
Social Media and Investing – Understanding Your Accounts
The SEC’s Office of Investor Education and Advocacy
is issuing this Investor Bulletin to provide investors
with tips they should consider when establishing an
account on a social media website. Investors’ use of
Facebook,Twitter and other social media websites as
an investing tool has increased substantially in recent
years. Investors who use social media websites for
investing should be mindful of the various features on
these websites in order to protect their privacy and
help avoid fraud.
Tips investors should consider when using
social media websites
Privacy Settings: Investors should be mindful of the
default privacy settings when establishing an account
on a social media website. The default privacy settings
on many social media websites are typically broad and
may permit sharing of information to a vast online
community. Investors should check default settings
and modify them, if appropriate, before posting any
information on a social media website.
Biographical Information: Many social media
websites require biographical information to open an
account. This information may not have to be made
available to other social media users once the account
is active. Investors should consider customizing
their privacy settings to minimize the amount of
biographical information that they allow others to
view on the website. For example, many users permit
“friends” or authorized users to see their birthday
month and date, but not the birth year. Or similarly,
many users choose not to display their address,
hometown, work or other identifying information.
Account Information: Investors should never
communicate account information, Social Security
numbers, bank information or other sensitive financial
information on a social media website. If investors
need to speak to their financial professionals regarding
their accounts or investments, they should seek a
firm-sponsored method of communication, such
as telephone, letter, firm e-mail or firm-sponsored
website. A financial professional’s social media website
may not necessarily be a firm-sponsored site and may
be that individual’s personal site.
Friends/Contacts: Investors should consider
whether it is appropriate to accept a “friend” or other
membership request from a financial service provider,
such as a financial adviser or broker-dealer, given the
intended purpose of the social media website. There is
no obligation to accept a “friend” request of a service
provider or anyone you do not know or do not
know well. Denying a request may be appropriate,
depending on your comfort level with the person
requesting access to your media site. Remember
that once a person is your “friend,” that person, and
possibly that person’s friends, can see any posting made
on your social media site, unless privacy restrictions
are activated.
Investor Assistance (800) 732-0330
www.investor.gov
1
Site Features: Investors should familiarize
themselves with the functionality of the social media
website before broadcasting messages on the site.
Investors should consider that certain messages may be
seen only by specified recipients (direct mail, e-mail
or instant messaging functionality) and others may be
viewed by all users (for example, posts on the “wall”
on Facebook).
On-Line Security Tips: As with all computer and
web-based accounts, investors should take precautions
to ensure that information contained in their social
media accounts remains secure.
Pick a “strong” password, keep it secure,
and change it frequently. Investors should
select “strong” passwords for their social media
accounts. Strong passwords are not easy to detect
and generally consist of eight or more characters
that are a combination of letters, numbers and
symbols. Strong passwords should not be based on
common words, phrases, or personal information,
such as a name or birthday. Investors should keep
their passwords in a safe place and out of plain sight.
Investors should never share their social media
passwords on the Internet, over e-mail, or on the
phone. In addition, investors should change their
social media passwords at least every six months.
Use different passwords for different
accounts. Investors should not use a single
password for different social media accounts. Using
a single password for different social media account
accounts is the equivalent of using a single key for
your car, house, and mail box – if you lose the key,
you give away access to everything.
Use caution with public computers or
wireless connections. Investors should try to
avoid accessing their social media accounts on
public or other shared computers. Investors who
use a public computer to access their social media
account should remember:
• Log out of the account completely by
clicking the “log out” button on the social
media website to terminate the online session.
Closing or minimizing the web browser does
not necessarily log out the account.
• Delete the computer’s “temporary Internet
files” and Internet history.
Investors should also be mindful of accessing their
social media accounts on public wireless connections,
such as at a coffee shop or airport. It is very easy to
eavesdrop on Internet traffic, including passwords and
other sensitive data, on a public wireless network.
Investors who use a public wireless network to access
their social media accounts should remember:
• Do not type any passwords unless the website
you are accessing uses a secure connection
that scrambles your password. The easiest way
to determine whether a website is secure is
to look in the address bar. If the page’s web
address begins with “https” instead of “http,”
then it is a secure connection.
• Avoid entering sensitive personal information.
Investors should avoid accessing or providing
any personal financial or investment
information such as Social Security numbers,
bank or brokerage account numbers, bank or
brokerage account passwords, over a public
wireless network.
• Turn off file sharing. With some computers,
by default all of your hard drive is wide open
to any other computer connected to the same
network. Make sure this feature is turned
off when accessing information over a public
wireless network.
• Make sure your computer has current anti
virus software and a firewall.
Be extra careful before clicking on links sent to
you, even if by a friend. Investors should always
verify that links or messages containing links that
are sent to their social media accounts come from
legitimate sources.
Investor Assistance (800) 732-0330
www.investor.gov
2
Clicking on a malicious link could:
• link to a website that tricks you into
providing personal information that can be
used to steal your money or identity, or
• cause malicious software (e.g., computer
viruses, worms,Trojan horses, or spyware)
to automatically infect your social media
account or your computer.
To guard against dangerous links, investors should
remember the following:
• Do not click on a link that appears to be
randomly sent by someone you know,
especially if there is no explanation for why
the link was sent, or if the explanation is out
of character for the sender.
Related Information
For additional educational information for investors,
see the SEC’s Office of Investor Education and
Advocacy’s homepage and the SEC’s Investor.gov
website. For additional information relating to social
media and privacy issues, also see:
SEC’s Investor Alert: “Social Media and Investing:
Avoiding Fraud.”
Financial Fraud Enforcement Task Force’s web page on
privacy issues.
U.S. Army: “9 Critical Steps: Protecting Yourself on
Facebook.”
• Do not click on a link that was sent to you
by a business you do not know. Perform an
online search for the business and go directly
to the business’ website to determine if the
link is legitimate.
• Do not click on a link that was sent to you by
a business that you have an existing account
with. Investors should confirm the legitimacy
of the link by either going directly to the
business’ website or calling up the business
with a confirmed telephone number.
Secure your mobile devices. Many mobile
devices, such as smartphones or tablets, have software
applications that allow users automatic access to
their social media accounts. Unauthorized access to
these mobile devices could compromise the personal
information contained in your social media accounts.
Investors who have mobile devices that are linked
to their social media accounts should make sure that
these devices are password protected in case they are
lost or stolen.
The Office of Investor Education and Advocacy has
provided this information as a service to investors. It
is neither a legal interpretation nor a statement of
SEC policy. If you have questions concerning the
meaning or application of a particular law or rule,
please consult with an attorney who specializes in
securities law.
Investor Assistance (800) 732-0330
January 2012
3 OCR text (9,794c · tika · 95% conf)
Investor Bulletin: Social Media and Investing – Understanding Your Accounts The SEC’s Office of Investor Education and Advocacy is issuing this Investor Bulletin to provide investors with tips they should consider when establishing an account on a social media website. Investors’ use of Facebook,Twitter and other social media websites as an investing tool has increased substantially in recent years. Investors who use social media websites for investing should be mindful of the various features on these websites in order to protect their privacy and help avoid fraud. Tips investors should consider when using social media websites Privacy Settings: Investors should be mindful of the default privacy settings when establishing an account on a social media website. The default privacy settings on many social media websites are typically broad and may permit sharing of information to a vast online community. Investors should check default settings and modify them, if appropriate, before posting any information on a social media website. Biographical Information: Many social media websites require biographical information to open an account. This information may not have to be made available to other social media users once the account is active. Investors should consider customizing their privacy settings to minimize the amount of biographical information that they allow others to view on the website. For example, many users permit “friends” or authorized users to see their birthday month and date, but not the birth year. Or similarly, many users choose not to display their address, hometown, work or other identifying information. Account Information: Investors should never communicate account information, Social Security numbers, bank information or other sensitive financial information on a social media website. If investors need to speak to their financial professionals regarding their accounts or investments, they should seek a firm-sponsored method of communication, such as telephone, letter, firm e-mail or firm-sponsored website. A financial professional’s social media website may not necessarily be a firm-sponsored site and may be that individual’s personal site. Friends/Contacts: Investors should consider whether it is appropriate to accept a “friend” or other membership request from a financial service provider, such as a financial adviser or broker-dealer, given the intended purpose of the social media website. There is no obligation to accept a “friend” request of a service provider or anyone you do not know or do not know well. Denying a request may be appropriate, depending on your comfort level with the person requesting access to your media site. Remember that once a person is your “friend,” that person, and possibly that person’s friends, can see any posting made on your social media site, unless privacy restrictions are activated. Investor Assistance (800) 732-0330 www.investor.gov 1 http:www.investor.gov Site Features: Investors should familiarize themselves with the functionality of the social media website before broadcasting messages on the site. Investors should consider that certain messages may be seen only by specified recipients (direct mail, e-mail or instant messaging functionality) and others may be viewed by all users (for example, posts on the “wall” on Facebook). On-Line Security Tips: As with all computer and web-based accounts, investors should take precautions to ensure that information contained in their social media accounts remains secure. Pick a “strong” password, keep it secure, and change it frequently. Investors should select “strong” passwords for their social media accounts. Strong passwords are not easy to detect and generally consist of eight or more characters that are a combination of letters, numbers and symbols. Strong passwords should not be based on common words, phrases, or personal information, such as a name or birthday. Investors should keep their passwords in a safe place and out of plain sight. Investors should never share their social media passwords on the Internet, over e-mail, or on the phone. In addition, investors should change their social media passwords at least every six months. Use different passwords for different accounts. Investors should not use a single password for different social media accounts. Using a single password for different social media account accounts is the equivalent of using a single key for your car, house, and mail box – if you lose the key, you give away access to everything. Use caution with public computers or wireless connections. Investors should try to avoid accessing their social media accounts on public or other shared computers. Investors who use a public computer to access their social media account should remember: • Log out of the account completely by clicking the “log out” button on the social media website to terminate the online session. Closing or minimizing the web browser does not necessarily log out the account. • Delete the computer’s “temporary Internet files” and Internet history. Investors should also be mindful of accessing their social media accounts on public wireless connections, such as at a coffee shop or airport. It is very easy to eavesdrop on Internet traffic, including passwords and other sensitive data, on a public wireless network. Investors who use a public wireless network to access their social media accounts should remember: • Do not type any passwords unless the website you are accessing uses a secure connection that scrambles your password. The easiest way to determine whether a website is secure is to look in the address bar. If the page’s web address begins with “https” instead of “http,” then it is a secure connection. • Avoid entering sensitive personal information. Investors should avoid accessing or providing any personal financial or investment information such as Social Security numbers, bank or brokerage account numbers, bank or brokerage account passwords, over a public wireless network. • Turn off file sharing. With some computers, by default all of your hard drive is wide open to any other computer connected to the same network. Make sure this feature is turned off when accessing information over a public wireless network. • Make sure your computer has current anti virus software and a firewall. Be extra careful before clicking on links sent to you, even if by a friend. Investors should always verify that links or messages containing links that are sent to their social media accounts come from legitimate sources. Investor Assistance (800) 732-0330 www.investor.gov 2 http:www.investor.gov Clicking on a malicious link could: • link to a website that tricks you into providing personal information that can be used to steal your money or identity, or • cause malicious software (e.g., computer viruses, worms,Trojan horses, or spyware) to automatically infect your social media account or your computer. To guard against dangerous links, investors should remember the following: • Do not click on a link that appears to be randomly sent by someone you know, especially if there is no explanation for why the link was sent, or if the explanation is out of character for the sender. Related Information For additional educational information for investors, see the SEC’s Office of Investor Education and Advocacy’s homepage and the SEC’s Investor.gov website. For additional information relating to social media and privacy issues, also see: SEC’s Investor Alert: “Social Media and Investing: Avoiding Fraud.” Financial Fraud Enforcement Task Force’s web page on privacy issues. U.S. Army: “9 Critical Steps: Protecting Yourself on Facebook.” • Do not click on a link that was sent to you by a business you do not know. Perform an online search for the business and go directly to the business’ website to determine if the link is legitimate. • Do not click on a link that was sent to you by a business that you have an existing account with. Investors should confirm the legitimacy of the link by either going directly to the business’ website or calling up the business with a confirmed telephone number. Secure your mobile devices. Many mobile devices, such as smartphones or tablets, have software applications that allow users automatic access to their social media accounts. Unauthorized access to these mobile devices could compromise the personal information contained in your social media accounts. Investors who have mobile devices that are linked to their social media accounts should make sure that these devices are password protected in case they are lost or stolen. The Office of Investor Education and Advocacy has provided this information as a service to investors. It is neither a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law. Investor Assistance (800) 732-0330 January 2012 3 http://www.sec.gov/investor.shtml http://www.sec.gov/investor/alerts.shtml http://www.sec.gov/investor/alerts.shtml http://www.stopfraud.gov/protect-identity.html http://www.stopfraud.gov/protect-identity.html http:Investor.gov http://investor.gov/ http://www.sec.gov/cgi-bin/goodbye.cgi?www.slideshare.net/USArmySocialMedia/social-media-roundup-9-critical-steps-protecting-yourself-on-facebook