"SEC: Beware Hurricane Ida Investment Scams"

The US Securities and Exchange Commission (SEC) has warned investors not to fall for scams capitalizing on the Hurricane Ida recovery and clean-up operation.  The regulator’s Office of Investor Education and Advocacy claimed that disasters, including hurricanes, floods, and oil spills, often attract opportunistic fraudsters, who use email and social media to promote their scams.  The regulator’s Office of Investor Education and Advocacy stated that these scams can take many forms, including promoters touting companies purportedly involved in clean-up and repair efforts, trading programs that falsely guarantee high returns, and classic Ponzi schemes where new investors’ money is used to pay money promised to earlier investors.  The best ways to avoid investment fraud is to ask questions, be skeptical if you are approached by somebody touting an investment opportunity, and make sure to ask that person whether they are licensed and whether the investment they are promoting is registered with the SEC or with a state. In terms of volume, investment scams numbered only around 8,800 last year, putting them in the bottom half of the most common types of cybercrime by victim count, according to the FBI.  However, they ranked at number three in total losses, costing victims over $336m in 2020. That puts the category behind only romance scams ($600m) and Business Email Compromise ($1.9bn). 

Infosecurity reports: "SEC: Beware Hurricane Ida Investment Scams"