Press Release: SEC Warns Investors of Phony Web Site Targeting Madoff Fraud Victims; 2010-38; March 10, 2010
The SEC warned investors about a fraudulent website impersonating SIPC, falsely claiming to have recovered $1.3 billion in Madoff funds and demanding personal information under the guise of the fictitious 'International Security Investor Protection Corporation' (ISIPC), which mimicked official logos and falsely claimed affiliations with the U.S. government, UN, IMF, and World Bank.
The SEC issued an alert in March 2010 about a phishing website impersonating the Securities Investor Protection Corporation (SIPC) to exploit victims of Bernard Madoff’s Ponzi scheme. The fraudulent site, named the 'International Security Investor Protection Corporation' (ISIPC), falsely claimed to have recovered $1.3 billion in hidden Madoff assets and required victims to submit personal details to verify refund eligibility. It mimicked SIPC’s website design and falsely asserted affiliations with the U.S. government, United Nations, International Monetary Fund, and World Bank to appear legitimate, though no charges were filed due to the anonymous, likely offshore nature of the operators.
In March 2010, the U.S. Securities and Exchange Commission (SEC) issued a public alert warning investors about a fraudulent website targeting victims of Bernard Madoff’s $65 billion Ponzi scheme. The scam site, operating under the fictitious name 'International Security Investor Protection Corporation' (ISIPC), falsely claimed to have recovered $1.3 billion in hidden Madoff funds and demanded personal information to 'verify' eligibility for refunds—a classic advance-fee fraud tactic. To appear legitimate, the site closely mimicked the look and feel of the real Securities Investor Protection Corporation (SIPC) and falsely claimed official affiliations with the U.S. government, the United Nations, the International Monetary Fund, and the World Bank, even linking to actual government websites to deceive users. The SEC emphasized that such scams prey on the desperation of fraud victims seeking to recover lost money and urged the public to avoid unsolicited refund offers. No individuals were charged in connection with this specific website, as it was likely operated by anonymous scammers outside U.S. jurisdiction. The alert was part of the SEC’s broader effort to protect vulnerable investors from copycat schemes following high-profile financial crimes. Victims were directed to official SEC and SIPC resources for accurate information on Madoff recovery efforts. The incident underscored the persistent threat of post-fraud scams and the importance of verifying claims through trusted regulatory channels.
Exhibits & Attached Documents (1)
Extracted insights
- $1.30B $1.3 billion ≥$1B
- person bernard madoff
- person con artists
- person isipc web site
- person lori schock
- person madoff fraud victims
- person phony web site
- scheme_term ponzi scheme
- agency sec's office of investor education and advocacy
- agency Securities and Exchange Commission
- person web site
- SEC warns investors about Phony Web Site Targeting Madoff Fraud Victims
- Web Site falsely claims to have recovered $1.3 Billion in Funds Hidden by Bernard Madoff in Malaysia
- Bernard Madoff is convicted of Ponzi Scheme
- Phony Web Site claims to be International Security Investor Protection Corporation (ISIPC)
- ISIPC Web Site mimics Securities Investor Protection Corporation (SIPC) Web Site
- ISIPC falsely claims to be sponsored by United Nations, International Monetary Fund, and World Bank
- Lori Schock is Director of SEC's Office of Investor Education and Advocacy
- Con Artists target Madoff Fraud Victims
SEC Warns Investors of Phony Web Site Targeting Madoff Fraud Victims FOR IMMEDIATE RELEASE 2010-38 Washington, D.C., March 10, 2010 — The Securities and Exchange Commission is alerting investors about a Web site that falsely claims to have recovered $1.3 billion in funds hidden by convicted Ponzi schemer Bernard Madoff in Malaysia. The site asks Madoff victims to submit information to verify that they are on a refund list — a ploy commonly used by con artists to further rip off financial fraud victims. The phony Web site claims to be home to the "International Security Investor Protection Corporation" — a fictitious entity. The "ISIPC" Web site bears a certain likeness to the Securities Investor Protection Corporation's (SIPC) Web site, mimicking its look, feel, and content in an attempt to achieve an aura of authenticity with Madoff victims. The "ISPIC" Web site claims to partner with several governments including the United States, and links to actual government Web sites to signify an affiliation. "ISIPC" also falsely claims to be sponsored by the United Nations, the International Monetary Fund, and the World Bank. "Investors who lose money in widely publicized schemes are often targeted by con artists looking to cash in on the victim's desire to recover losses," said Lori Schock, Director of the SEC's Office of Investor Education and Advocacy. "Victims of fraudulent schemes should be aware that such refund schemes commonly exist, and can be perpetrated through copycat Web sites that appear similar to those of actual regulators or other organizations." The SEC's investor alert is available at: http://www.sec.gov/investor/alerts/sipcscamalert.htm # # # http://www.sec.gov/news/press/2010/2010-38.htm Home | Previous Page Modified: 03/10/2010