WASHINGTON, Aug. 31, 2022 /PRNewswire/ — The North American Securities Administrators Association (NASAA) today issued an Informed Investor Advisory cautioning investors to protect themselves from investment scams and frauds offered in the unregulated metaverse, the online virtual “world” that provides users with immersive experiences through virtual or augmented reality technologies.
According to the advisory, the metaverse may offer numerous potential investment opportunities, including virtual real estate, nonfungible tokens (NFTs) and other businesses. But the advisory warns that the lack of regulation in the metaverse, combined with the ability to operate from anywhere in the world, make it easy for fraudsters to hide their financial schemes. In addition, security lapses on some developing platforms and the ability to build fake metaverse experiences can lead to hacks, fraud, or the theft of users’ funds.
“Investors should keep in mind that every investment comes with risk, and no investment can be guaranteed against loss,” said NASAA President and Maryland Securities Commissioner Melanie Senter Lubin. “Our experience with so-called investment opportunities found in the metaverse, is that we see the same old financial scams simply dressed in new clothes and offered to investors in the metaverse. Investors need to be wary…
