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“We
expect to see more complaints from investors who have been lured
into schemes offering the promise of high returns in order to
supplement lost income due to the pandemic,” said Secretary
White.
The North American Securities Administrators Association (NASAA),
which includes the Illinois Securities Department, conducted a
nationwide survey, which found fraudulent internet, or social
media schemes as the top investor threat. Other top schemes
included cryptocurrency-related and precious metals-based
investments, foreign exchange-related schemes and investments
involving foreign exchange and cryptocurrency-related schemes
disguised as membership or investment programs.
White said investment offers that sound “too good to be true”
often share similar characteristics. The most common telltale
sign of an investment scam is an offer of guaranteed high
returns with no risk.
The NASAA survey, which included responses of enforcement
officials throughout the United States, Canada and Mexico, also
indicated that 82% of state and provincial securities regulators
anticipate that fraudsters will continue to attempt to prey on
investor fear and anxiety related to changes in finance al
markets and the economy due to COVID-19.
White reminds Illinois investors to verify that the salesperson
and the investment itself are properly licensed or registered.
To check if a salesperson or investment advisor is registered,
contact the Secretary of State’s Securities Department at
800-628-7937 or visit
www.AvoidThe
Scam.net for
more information.
[Illinois Office of Communication and
Information]
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