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 

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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 antivirus 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 

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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 

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