DCCA Information Launch: TOP INVESTOR THREATS FOR 2021
HONOLULU — The state Division of Commerce and Shopper Affairs’ (DCCA) Workplace of the Securities Commissioner (OSC) reminds Hawaii buyers to be cautious of funding schemes pitched by means of the web and social media, significantly these involving treasured metals, cryptocurrencies, promissory notes and overseas trade markets.
Schemes associated to those merchandise had been recognized as the highest threats dealing with buyers this 12 months in a survey by the North American Securities Directors Affiliation (NASAA), of which the OSC is a member. The survey consists of responses of enforcement officers with state and provincial securities regulators all through the US, Canada and Mexico.
The survey discovered fraudulent internet- or social media-based frauds as the highest menace to buyers. Ranked second are cryptocurrency-related and treasured metals-based investments, particularly these bought by means of self-directed particular person retirement accounts, which lack the providers and safety of conventional IRAs and might be fertile soil for scammers. International exchange-related schemes rounded out the highest three threats. Enforcement officers anticipate to see a resurgence of high-yield overseas trade and cryptocurrency-related schemes concentrating on buyers this 12 months disguised as membership or funding applications.
The NASAA survey additionally indicated that 82 p.c of state and provincial securities regulators anticipate that dangerous actors will proceed to aim to leverage on investor concern and anxiousness associated to adjustments in monetary markets and the economic system because of COVID-19 to illegally promote securities this 12 months.
“Fraudsters will at all times attempt to leverage vulnerabilities wherever they are often discovered. Traders could also be lured by the promise of excessive returns as a option to complement revenue misplaced on account of the pandemic,” stated Securities Commissioner Ty Nohara.
Funding presents that sound “too good to be true” usually share related traits. The commonest telltale signal of an funding rip-off is a proposal of assured excessive returns with no threat. All investments carry the chance that some, or all, of the invested funds could possibly be misplaced.
Nohara recommends that buyers at all times ask if the salesperson and the funding itself are correctly registered. This data might be confirmed by the OSC or on-line at https://brokercheck.finra.org/.
To examine the registration of the funding or the particular person providing it, contact the OSC’s Securities Compliance Department at (808) 586-2722 or electronic mail [email protected].
To report funding fraud, contact the OSC’s Securities Enforcement Department at (808) 586-2740, toll free at 1-877-HI SCAMS or electronic mail [email protected]. To file a grievance or report a tip by means of the Securities On-line Portal, go to https://dccabreg.force.com/securities/s/.
For extra investor safety data and sources, go to the OSC’s Investor Schooling Program web site at https://cca.hawaii.gov/sec/iep/.
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Division of Commerce and Shopper Affairs
E mail: [email protected]
Telephone: (808) 586-7582