(WAND)- In recognition of Consumer Protection Week, Illinois Secretary of State Jesse White is urging investors to be wary of internet and social media schemes promoting precious metals, cryptocurrencies, promissory notes, and foreign exchange markets.
Investors should contact the Securities Department with reports of investment fraud.
“We expect to see more complaints from investors who have been lured into schemes offering the promise of high returns in order to supplement lost income due to the pandemic,” said Secretary White.
According to the North American Securities Administrators Association (NASAA), a nationwide survey found fraudulent internet or social media schemes as the top investor threat.
Other top schemes included cryptocurrency-related and precious metals-based investments, foreign exchange-related schemes, and investments involving foreign exchange and cryptocurrency-related schemes disguised as membership or investment programs.
White warns investors to beware of offers that sound “too good to be true." The most common telltale sign of an investment scam is an offer of guaranteed high returns with no risk.
The NASAA survey also indicated that 82% of state and provincial securities regulators anticipate fraudsters will continue to try and take advantage of investor fear and anxiety related to changes in financial markets and the economy due to COVID-19.
Illinois investors should always verify that the salesperson and the investment itself are properly licensed or registered.
To check if a salesperson or investment advisor is registered, contact the Secretary of State’s Securities Department at 800-628-7937 or visit www.AvoidTheScam.net for more information.
