The US Securities and Exchange Commission (SEC) Office of Investor Education and Advocacy is warning investors to be “extremely wary” of potential investment scams related to Hurricane Ida. Scams may be promoted through email and social media posts, promising high returns for small, thinly-traded companies that supposedly will reap huge profits from recovery and cleanup efforts. Fraudsters may likely target individuals receiving compensation from insurance companies
One of the best ways to avoid investment fraud is to ne skeptical and ask questions. Individuals should ask anyone approaching them with an investment opportunity if they’re licensed and if their investment is registered with the SEC or with a US state securities regulator. This can be easily checked by contacting the SEC or the state securities regulator. “Know that promises of fast and high profits, with little or no risk, are classic signs of fraud” says the SEC alert.
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