Scamsters Increase In Uncertain Market

The North American Securities Administrators Association is warning investors to be more cautious and beware of scammers who proliferate in times of uncertainty in the market. Those nearing retirement are especially at risk for being targeted by scammers.

Scamsters follow the news and often prey on investors’ fear to promote bogus investments with promises of high return and little or no risk,” said NASAA President and North Dakota Securities Commissioner Karen Tyler.

Tyler also said investors nearing retirement are particularly at risk of being targeted by phony investment schemes promising high returns to make up for losses in retirement accounts. “We are concerned that investors may allow uncertainty over current market conditions to lead them into fraudulent investment schemes that could weaken or devastate their financial position, potentially wiping out the retirement security they worked so hard to build. A hasty decision often can make a bad situation worse.”

Tyler gave these recommendations to investors:

* Hang up on aggressive cold callers and delete unsolicited e-mail messages promoting investments opportunities with little or no risk.
* Contact their state or provincial securities regulator to check that both the seller and the investment are licensed and registered. If they aren’t, don’t invest. Contact information is available on the NASAA website here.
* Request written information about any investment; carefully review it or ask your financial adviser to evaluate it.
* Use common sense. Get-rich-quick promises are usually signs of investment fraud.
* If you suspect you’ve been scammed, report it to your state or provincial securities regulator. Your call could help others from losing money.

Tyler also cautioned that financial professionals do not generally advise clients to make changes to investment portfolios in times of market volatility.

Read the press release