(New) Imposter Websites Impacting Member Firms

Several member firms have recently notified FINRA that they have been victims of imposter websites—which are sites designed to mimic a firm’s actual website with the end goal of committing financial fraud. This Notice outlines steps firms can take to monitor for imposter websites and what to do if an imposter website is found.

FINRA Information Notice (April 29, 2019): FINRA Provides Guidance to Firms Regarding Suspicious Activity Monitoring and Reporting Obligations


FINRA Warns of Fraudulent Phishing Emails Targeting Member Firms

FINRA warns member firms to be on the lookout for a fraudulent phishing email that is currently circulating. Brokerage firms reported to FINRA that they have received suspicious emails targeting their compliance personnel. The email appears to be from a legitimate credit union attempting to notify the firm about potential money laundering involving a purported client of the firm. The email directs the recipient to open an attached document—which likely contains a malicious virus or malware designed to obtain unauthorized access to the recipient’s computer network. As a reminder, phishing scams are ever-changing and are designed to infiltrate the computer network of the recipient. Use caution when opening emails from unknown senders and do not open attachments until you verify the sender and information that might be included in the document.

FINRA Information Notice (February 13, 2019): FINRA Warns of Fraudulent Phishing Emails Targeting Member Firms


FINRA Report on Cybersecurity Practices

This report continues FINRA’s efforts to share information that can help broker-dealer firms further develop their cybersecurity programs. Firms routinely identify cybersecurity as one of their primary operational risks. Similarly, FINRA continues to see problematic cybersecurity practices in its examination and risk monitoring program. This report presents FINRA’s observations regarding effective practices that firms have implemented to address selected cybersecurity risks while recognizing that there is no one-size-fits-all approach to cybersecurity. 

When selecting the topics for this report, FINRA considered the evolving cybersecurity threat landscape, firms’ primary challenges and the most frequent cybersecurity findings from our firm examination program. First, we address how firms have strengthened their cybersecurity controls in branch offices, which is especially important for firms with decentralized business models. Second, we discuss limiting phishing attacks, which remain a top cybersecurity challenge for many firms. Third, we explain the importance of identifying and mitigating insider threats, which are of concern for many firms. Fourth, we describe the elements of a strong penetration testing program. Finally, we share observations regarding establishing and maintaining controls on mobile devices, which have emerged as a significant risk for many firms because of their increasingly widespread use by employees and customers.

FINRA Report on Cybersecurity Practices (December 2018)


FINRA Warns Firms of Regulator Impersonators

Recently, FINRA has received reports of member firms receiving telephone calls from persons claiming to work for FINRA in an attempt to deceive firms into revealing confidential information. FINRA is notifying firms that these individuals may be impersonators. Firms that receive telephone calls or emails purportedly from someone at FINRA requesting any type of information— confidential or otherwise—should use caution and verify the identity of the caller or sender before providing any information or responding to an email.

FINRA Information Notice (July 13, 2018): FINRA Warns Firms of Regulator Impersonators


SEC Investor Bulletin

The SEC’s Office of Investor Education and Advocacy issued this Investor Bulletin to help investors protect their online investment accounts from fraud. As with all web-based accounts, investors should take precautions to help ensure that their online investment accounts remain secure. These online security tips can help.

SEC Investor Bulletin:  Protecting Your Online Accounts from Fraud (April 26, 2017)


A Small Entity Compliance Guide: Final Model Privacy Form Under the Gramm-Leach-Bliley Act

The model privacy form is designed to make it easier for consumers to understand how financial institutions collect and share their personal financial information and to compare different institutions' information practices. For a guide to implementing these procedures visit:



FINRA Cybersecurity Topic Page

Given the evolving nature, increasing frequency, and sophistication of cybersecurity attacks – as well as the potential for harm to investors, firms, and the markets – cybersecurity practices are a key focus for FINRA. Visit the link below for more information on related rules, notices, guidance, news and investor education

• FINRA Topic Page:  Cybersecurity


Webinar: Cybersecurity Considerations for Small Firms

This one-hour free webinar tackles a top priority for small firms: building an effective cybersecurity program with limited resources. Panelists share best practices, with a focus on how small firms can apply the National Institute of Standards and Technology (NIST) framework. The webinar includes a discussion on the following topics.

  • Overview of NIST Framework
  • The role compliance should play in addressing cyber risks
  • Factors for developing a cybersecurity program
  • Focus of FINRA examinations
  • Considerations for recognizing a cyber-attack and developing a process for response

Note: Access to webinars is limited to FINRA member firms and CRCP graduates.