State regulators on Wednesday released their list of top emerging threats facing investors in the New Year, which includes schemes involving binary options, marijuana-related businesses, stream-of-income investments and digital currency.
NASAA also released its list of ongoing threats that state regulators continue to watch.
William Beatty, NASAA’s president and Washington Securities Director, said in announcing the list that “many of the top threats facing investors involve new products in classic schemes.”
Regulators, he said, are seeing classic threats to investors “morph into new or altered dangers, many fueled by the Internet.” Overarching all of these threats “are unlicensed agents selling unregistered products to unsuspecting investors.”
But actions against unregistered individuals continue to rank highest among enforcement actions by state securities regulators. “It cannot be said enough that investors should independently verify any investment opportunity as well as the background of the person and company offering the investment,” Beatty said.
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