FINRA Issues Investor Alert to Warn against Viral Disease Stock Scams

FINRA issued an investor alert titled "Viral Disease Stock Scams: Don't Let Them Infect Your Portfolio."

Specifically, the alert warns investors to be wary of promotions touting stocks in companies that claim to provide products that protect against the spread of viruses or other harmful diseases. FINRA is aware of several potential investment scams involving companies that claim to be involved in the development of products that will prevent the spread of viral diseases.

The alert provided a list of tips to avoid potential stock scams, which include the following:

• be skeptical of press releases, e-mail and promotional material from unknown senders hyping a company and its products;
• find out who is at the controls of a company before you invest;
• be wary of frequent changes to a company's name or business focus; and
• be aware that citing a relationship with a government agency, prominent company or academic institution may be a ploy to create legitimacy for a company that does not deserve it.

See: "Viral Disease Stock Scams: Don't Let Them Infect Your Portfolio".