In the wake of widespread damage caused by Hurricane Florence, the North American Securities Administrators Association (NASAA) on Tuesday cautioned investors to watch out for opportunistic investment or charitable scams.
NASAA reminds investors to watch for red flags of hurricane-related scams, including “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.”
“Natural disasters bring out the best and worst in people. While news stemming from Hurricane Florence has rightfully focused on the tireless efforts of first responders and neighbors helping neighbors, we know from experience that financial predators are lurking like snakes in the water to seek profit from the misfortune of others,” says Joseph Borg, president of NASAA, in a statement.
“Unsolicited investment offers seeking to capitalize on the aftermath of Hurricane Florence should be approached with extreme caution,” Borg says, and scam artists may try to prey on victims who anticipate receiving large lump-sum insurance settlements storm-related losses.
NASAA also cautioned about fraudulent charitable solicitations that prey on the goodness of people seeking to help those in need.