The North American Securities Administrators Association today cautioned investors to be wary of risky investment schemes during the holiday season.
“Investment fraud does not take a holiday,” said Karen Tyler, NASAA president and North Dakota Securities Commissioner. “The holiday season is a time of generosity. Unfortunately, it’s also the time of year when criminals aggressively seek to exploit the holiday spirit of goodwill.”
State securities regulators are concerned that predatory behaviour combined with recent financial challenges—higher gasoline prices, a volatile stock market, lower housing values, and general economic unrest—may lead investors to make hasty, ill-informed decisions in the pursuit of higher returns.
NASAA urges investors to be especially vigilant in protecting their assets from Internet, telephone and in-person promotions for alternative investment opportunities.
In testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Tyler said investment fraud is a year-round problem but has a greater impact during the holidays when consumers may face a financial crunch because of increased expenses.
“The holiday season brings phony investment schemes promoted by unscrupulous individuals seeking to fleece investors for all they’re worth. Take the time you need to understand what you’re investing in,” Tyler said.
Investment fraud also touches seniors, many alone for the holidays, who may be invited to a free holiday lunch or dinner investment seminar. “Fraudsters use the holiday season to prey on the lonely, especially the elderly, who may be more willing to attend a free-meal seminar where they’re fed a hard sales pitch instead of unbiased information,” Tyler said.
Beware of holiday investment fraud, NASAA warns
Securities regulators are concerned that holiday goodwill could lead to dangerous investing
- By: James Langton
- December 13, 2007 December 13, 2007
- 17:39