NASAA Warns Investors of COVID-19 Fraud Schemes
The North American Securities Administrators Association ("NASAA") warned investors of an increase in COVID-19 related fraud schemes.
According to NASAA, investors should be alert to fraudsters:
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promoting off-market private deals due to concerns with the regulated securities market;
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claiming investments in commodities (e.g., gold or silver) are "safe" or "guaranteed";
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promoting "buy-low sell-high recovery schemes";
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guaranteeing returns in order for investors to pay for rent, utilities or other expenses; and
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claiming that certain real estate investments are "safe and secure," and that proceeds from the sale of the real estate would cover losses.
In addition, NASAA urged investors to take steps to protect themselves by:
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verifying that a salesperson and investment are properly registered by checking with the appropriate regulatory agencies;
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being cautious of phishing scams that claim to have an association with organizations such as the Centers for Disease Control and Prevention or the World Health Organization;
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not making payments to anyone claiming to be able to cure or prevent COVID-19;
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avoiding fraudulent charity schemes that claim to help individuals affected by COVID-19; and
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not sharing personal information or making prepayments to individuals claiming to be government officials.