The conflict in Ukraine could mean investors will see increased cyberattack threats and potential investment scams, the state Regulation and Licensing Department is warning.
“Difficult times can bring out the best in people, but as regulators, we know from experience that there are bad actors looking to exploit crises to perpetrate scams on unsuspecting investors,” Superintendent Linda M. Trujillo said. “Investors and firms alike should make sure they are taking the steps necessary to safeguard financial information and are on the lookout for potential investor scams.”
Such scams might be linked to the rising costs of energy and fuel, so be wary of “extremely risky or bogus investments within the energy sector, including possible oil and gas deals,” says the state Securities Division.
Consider it a red flag if you are offered an investment that promises significant or guaranteed returns, even though there is little or no risk. Delete unsolicited offers that might come to you by email or through social media, the division says.
Also, beware the “unscrupulous promoter” who tries to take advantage of investor fears during volatile financial market fluctuations. This could come in the form of someone trying to convince you to “leave the regulated markets in favor of ‘less volatile’ or ‘stable’ investment opportunities.”
Make sure the promoter is registered with the state to sell investments, and make the same check regarding the…
