“Sadly, like any credential, a financial designation can be used fraudulently. Fraudsters often try to build credibility and gain trust by claiming to be an expert or have a special designation—a tactic known as source credibility. Many organizations that issue financial designations provide the public with a database of those who hold an up-to-date designation (you can find web links to conduct such a search using the previously mentioned Professional Designations tool),” Finra says.
As an added precaution, the agency tells investors to ask their advisor when they earned their designation and whether it’s still current. “Then, if possible, verify with the issuing organization that this is truly the case,” Finra advises.