In the wake of widespread damage caused by Hurricane and Tropical Storm Harvey in Texas, the North American Securities Administrators Association (NASAA) on Wednesday cautioned investors to watch out for opportunistic investment scams.
Investors should be on guard for hurricane-related scams that employ “unsolicited email, social media messages, crowdfunding pitches or telephone calls promoting investment pools or bonds to help storm victims, water-removal or purification technologies, electricity-generating devices and distressed real estate remediation programs,” the NASAA alert says.
“Unfortunately, we know from experience that disasters also can bring out the worst in people, particularly those seeking to profit from the misfortune of others. Unsolicited investment offers seeking to capitalize on the aftermath of Hurricane Harvey should be approached with extreme caution,” says Mike Rothman, president of NASAA and Minnesota Commissioner of Commerce, in a statement.
The alert also warns about fraudulent charitable solicitations, and fraudsters who may seek to prey on storm victims who anticipate receiving large insurance settlements. “The potential for fraud remains even after the skies have cleared,” Rothman adds.
Separately, NASAA extended the exam enrolment windows for candidates in regions declared disaster areas by state or federal governments.