FINRA Warns Investors of Coronavirus-Related Scams

FINRA alerted investors to coronavirus-related scams and recommended steps to avoid fraud.

In an Investor Alert, FINRA recommended that investors take steps to ensure their investments are legitimate by:

• researching and verifying information prior to making an investment decision;
• using caution with companies that make "exaggerated claims" to cure the coronavirus or other illnesses;
• checking the SEC's EDGAR database as to whether a public company files with the agency to make sure the company's promotional information aligns with the reports submitted to EDGAR;
• being skeptical of companies that change their name or business focus to tout disease-prevention products; and
• using FINRA's "Scam Meter" to see if a potential investment is a scam.