By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) on Wednesday issued an alert concerning the increase of activities of market fraudsters/impersonators.

This is contained in a circular with reference number BDR/CIR/OU/08/14 and signed by Olufemi Shobajo, head, broker dealer regulation to dealing member firms.

The NSE had referred to its circular dated January 23, 2014 referenced NSE/BDR/EA/01/14 on Identity Fraud and Enhanced Customer Due Diligence (KYC).

‘’We refer to our circular dated January 23, 2014 referenced NSE/BDR/EA/01/14 on Identity Fraud and Enhanced Customer Due Diligence (KYC),’’ the Nigeria’s Exchange said.

According to the Nigeria’s Exchange, it has observed an increasing trend of cyber fraud and scam mail sent by fraudsters/impersonators to dealing member firms.

‘’Dealing members are advised to confirm all client orders or mandates made by fax, telephone (voice or text) or electronic email before execution,’’ the NSE said.

The Exchange further advised dealing members to conduct proper KYC on all clients and report suspicious transaction reports (STR’s) to the Securities and Exchange Commission (SEC) and the Nigerian Financial Intelligence Unit (NFIU). ‘’Dealing Members are also informed to report all cases of suspected fraud to The Exchange for a collaborative effort towards sanitising the market,’’ the NSE said.