Hawaii’s Department of Commerce and Consumer Affairs’ (DCCA) Office of the Securities Commissioner (OSC) recently reminded investors to be cautious of scams that are on the rise in 2021, according to a press release.
According to a survey released by the North American Securities Administrators Association (NASAA), among the top threats to investors this year are fraudulent investment pitches advertised on internet and social media, particularly those involving precious metals, cryptocurrencies, promissory notes and foreign exchange markets.
The survey also shows that 82% of state and provincial securities regulators predict that fraudsters are trying to take advantage of investor fear and anxiety related to the effects of COVID-19 on financial markets and the economy to illegally sell securities this year.
“Fraudsters will always try to leverage vulnerabilities wherever they can be found. Investors may be lured by the promise of high returns as a way to supplement income lost as a result of the pandemic,” Securities Commissioner Ty Nohara said.
Investors are advised that the most common sign of an investment scam is an offer of guaranteed high returns with no risk and that all investments carry the risk that the invested funds could be lost.
Nohara recommends that investors should always ask if the salesperson and the investment are properly registered. This information can be confirmed by contacting the OSC or going online.