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March 31, 2020 at 02:29 PM
State securities regulators are warning that a likely surge in fraudulent investment schemes is brewing in light of the ongoing coronavirus pandemic.
Alabama Securities Commission Director Joseph Borg, who also heads the North American Securities Administrators Association’s Enforcement Section, warns that most of the scams “will simply be old scams dressed in contemporary clothing.”
Said Borg Monday in a statement: “While the financial, cultural and societal changes are fresh, scammers will begin perpetrating schemes that require little or no advance planning and minimal sophistication.”
Joe Rotunda, director of enforcement for the Texas State Securities Board and vice chair of NASAA’s Enforcement Section, added that scammers will be targeting “retail investors, capitalizing on recent developments in the economy and preying on concerns about the regulated securities market.”
Scammers’ “products and tactics will track recent economic and social trends, promising lucrative returns to retail investors concerned about their investments and retirement plans. Retail investors must remain vigilant to protect themselves from these schemes,” Rotunda warned.
Investors should be on the lookout for investments specifically tied to the threat of COVID-19, NASAA states.
