Report Fraud Here

You might pass along to your account holders two important telephone numbers that could help them fight fraud and stand up for their rights.

The first is a new toll-free number from the FTC for reporting fraud to law enforcement. The line is designed both to provide an easy way for consumers to report scams and possible fraud and for law enforcement to check what is happening.

Customers who are the victims of offers that didn't come through or who know when an offer is "too good to be true," can call (877) FTC-HELP. The line is staffed by counselors from 9 a.m. to 8 p.m. Eastern time, Monday through Friday. The information that is reported then goes into a database accessible to nearly 200 law enforcement agencies in the U.S. and Canada.

A second number is a simple way to avoid stock market fraud. A Central Registration Depository has been set up with state regulators and the National Association of Securities' Dealers. The depository contains customer complaints, arbitrations, and actions by state, industry and federal regulators, and law enforcement agencies. It is designed specifically to let individual investors check out brokers and firms before making investments.

Information from the depository is available by calling NASD's toll-free number at (800) 289-9999, or by visiting the Web sites of the North American Securities Administration Association at www.nasaa.org or NASD's site at www.nasdr.com.

Copyright © 1999 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 9, No. 7, 8/99